US$1.9 billion is being provided to Taiwanese container shipping companies from the government to try and save them from bankruptcy in the current market, reported the Wall Street Journal.
Wang Kwo-tsai, Taiwan’s Deputy Minister of Transportation, said: “The nation relies on shipping firms to transport goods that come in large quantities, which is key to our economic development. [The Hanjin Shipping collapse] shows us that the government has to provide support to the industry before the damage becomes uncontrollable”
The two main companies that will feel the benefits of the loan package provided with below market interest rates are Evergreen Marine Corp. and Yang Ming Marine Transport Corp.
Rumours were recently circulating of a merger between Evergreen Marine Corp and Yang Ming, the rumours have been denied by the two container operators; Evergreen and Yang Ming are two of the largest in the world.
Many companies have decided to either merge or are attempting to do so in 2016; K-Line, Nippon Yusen and Mitsui O.S.K Lines merged earlier this year to prevent economic failure in the current state of the industry and the planned merger between Hapag-Lloyd and United Arab Shipping Company could be on the verge of gaining EU Antitrust approval.