KAL hit by Hanjin Shipping collapse

Juliette O'Neill
By Juliette O'Neill September 2, 2016 17:30

KAL hit by Hanjin Shipping collapse

The news of the Hanjin Shipping collapse is causing ripples through the shipping and container leasing industry but, as part of the Hanjin Group, it also has ramifications for Korean Air Lines (KAL) as they share a parent. Korean Air is also a shareholder in the shipping company, with a 33% stake which was acquired in 2014 when the airline also loaned funds to Hanjin Shipping. The airline has reported in a regulatory filing that the revised estimated losses on its investment in Hanjin Shipping is around 383.3 billion won ($344 million).

Since the receivership filing, Korean freight charges rose by 50%, which would include cargo routes operated by the airline.

Juliette O'Neill
By Juliette O'Neill September 2, 2016 17:30