Following recent news that Maersk could be set to acquire ailing carrier Hanjin Shipping, Hanjin’s stocks have since soared by almost 20%, according to The Korea Herald.
Hanjin Shipping’s stock closed at US$1.03 per share, which is an 18.85% increase from the previous trading day.
PTI previously reported that Maersk was looking to acquire both carriers, as the two shipping companies would need a business that has financial standing in order to recover in a troubled market.
David Kerstens, Transport Analyst for Jefferies, previously said: “There’s been a lot of consolidation this year and many of the container lines just behind Maersk have grown. So Maersk is faced with substantially stronger competition.”
With all other lines either forming new alliances or opting into one of the ‘Big 3’ that are set to come into operation in early 2017, it is essential that those left, including Maersk act to consolidate current resources.
Despite the issues currently faced with Hanjin, the South Korean government has predicted that 90% of stranded cargo will be recovered by the end of October, 2016.