• Journal of Korea Trade
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• v.24 no.6
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• pp.115-134
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• 2020

Purpose - International trade leads to the international division of labor, improving the efficiency of the global economic system. Transport costs are a more serious barrier to international trade than customs tariffs. An increase in competition in the transport sector may thus lead to a reduction in transport costs. However, if a carrier's nationality significantly influences transport costs, simply adding more competing carriers of different nationalities would be ineffective. Therefore, it is necessary to establish national or regional carriers to influence competition and reduce transport costs. This study investigates this "nationality effect" by treating Hanjin Shipping's collapse as a natural experiment. Design/methodology - The theoretical basis of this study is the 3rd-degree price discrimination in container shipping market. By using the monthly data of container freight rates of Korea, China and Japan, this study shows the so-called Korea Premiums, which are the empirical counterparts of nationality effect in Korea container shipping market. For this empirical investigation, the structural model with state-space form is used and the dummy models are also estimated. In addition, because China has been also affected by the Hanjin's collapse, the China premiums are considered too. Findings - Compared with Japan's case, it is shown that there had been the so-called Korea premiums since the collapse of Hanjin Shipping. These results are robust from both the state-space model and dummy models. The time pattern of Korea premiums was consistent with the market evolution, especially the pattern of substitutability in container shipping markets. In addition, this paper shows the magnitude of Korea premiums. Originality/value - The argument of this study that the nationality effect can be interpreted as an extended concept of the home market effect is original, which is expected to evoke future research efforts. Further, the discussion on the shipping industrial policy from both horizontal and vertical aspects will provide the relevant policy makers with solid information, especially for the policy coordination in a global scale.

• Journal of Korea Port Economic Association
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• v.39 no.4
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• pp.83-96
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• 2023

As the globalization of the world economy progresses, the role and importance of shipping and ports continue to increase, and these industries have been developed as core national industries that create diverse added value on the front lines of import and export. However, the bankruptcy of Hanjin Shipping Co., Ltd., which representedSouth Korea, hadan impact on of the nation's competitiveness, and its aftermath has been reported both directly and indirectly until recently. Therefore, this study statistically investigated how Hanjin Shipping Crisisaffected the container traffic volume and structural changes at Gwangyang Port using intervention analysis. The main results of this research are that the impact on the decline in container volume at Gwangyang Port was greater at the start of the voluntary arrangement (Apr., 2016) than at the bankruptcy of Hanjin Shipping (Feb., 2017), resulting in a decrease of 983,000 TEU (268,000 TEU per year). This study will remind us of the importance of the shipping industry and shipping policy, and provide a theoretical foundation that will help the government make more prudent and correct policy decisions.

• Journal of Korea Port Economic Association
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• v.39 no.4
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• pp.97-106
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• 2023

Most scholars and media viewed the cause of the bankruptcy of Hanjin Shipping, which once boasted the world's seventh largest company, as management failure or CEO risk. However, in this study, the cause of Hanjin Shipping's bankruptcy was considered to be the collective action of ship investment from a behavioral economics perspective, and it was pointed out that the Korean government's inflexible fleet expansion policy was the background for this collective action. In short, the cause of Hanjin Shipping's bankruptcy was the purchase of ships during the boom period, and the root cause of the purchase of ships during the boom period was pointed out as 'collective action in which one feels safe only by following the actions of others.' In addition, in order to achieve the goal of 'shipping competitiveness = fleet size' set by our government, a policy was implemented to encourage ship purchases during recessions and even boom times, and this policy signaled to the market that 'now is a good time to buy ships'. It can be pointed out that was given.

• Journal of Navigation and Port Research
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• v.32 no.3
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• pp.159-165
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• 2008

The coastal shipping transport for containers had been serviced by Hanjin Transpotation Co., Ltd. and Korea Express Co., Ltd. from 1995. But Korea Express Co., Ltd. and Hanjin Transpotation Co., Ltd had stopped a coastal shipping transport service routed Busan-Incheon bemuse of getting worse of operation balance in 1999 and 2006 respectively. As a result of these situations, korean-flag and foreign-flag fleets are having difficulty in handling T/S cargos and in-time transport service among inter-ports in korea. As shippers also use lorry to transport their cargos than using costal shipping, it occurs increasing in national logistics' cost as well as time-consuming due to congestion on the road. Therefore, this paper identifies not anly current costal shipping transport systems but also those problems and analyses a economic effect in case of participation in the costal shipping transport service by foreign-flag vessel using monte carlo simulation.

• Journal of the Korean Institute of Navigation
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• v.11 no.2
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• pp.33-52
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• 1987

The disasters of wet bound vessels have been more frequent than those of east bound ones on the sea routes of the North Pacific Ocean in winter season. M/V Hanjin-Inchon was also west bound in her missing voyage. The container vessel of 17, 676 gross tons, M/V Hanjin-Inchon owned by Hanjin Shipping Co.Ltd in Seoul Korea left seattle in west coast of U.S.A for Pusan , Korea on the 5th Feb., 1987 and sailed along the exact courses recommended by Ocean Routes until she reported her position and speed as 49-30N, 158-00E and 8 knots to her head office in Seoul by this ship's time 2200 hours on the 13th Feb., 1987. The above message turned out to be last message from her because she had been missing since then leaving no message but only two life boats of her name, three containers cases, large scale of oil slicks and the corpse of her 3rd mate drifting on the sea near the position reported by her last message.

• 유체기계공업학회:학술대회논문집
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• 2005.12a
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• pp.566-572
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• 2005

The most crucial factor in membrane LNG ships to ensure sage operations, is how to effectively control tank pressure at the time of excessive generation of boil off gas (BOG). When the ships carry out tank cool down with her retaining heel prior to arrival at loading port, the vessel encounters the critical situation of excessive BOG and high tank pressure that can lead to high degree of risk. This is to provide one of the best ways to secure safe and effective LNG ship operations focusing on the detailed methods of tank cool down to achieve ATR(Arrival Temperature requirement) without building up high tank pressure and excessive BOG and calculating the appropriate heel quantity to be unutilized for tank cool down and fuel during ballast voyage.

• Journal of Korea Port Economic Association
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• v.37 no.4
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• pp.41-50
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• 2021

This study investigated what the general public thinks about the shipping industry and how important it is. As a result of the study, more than half of the respondents answered that they knew a little about the shipping industry or that they were normally knew about the shipping industry. Regarding the necessity of budget input to prevent bankruptcy of national shipping companies, it was found that more than half of the respondents answered that it was necessary or moderate. Regarding the necessity of maintaining a national shipping companies, 53% of respondents said it was necessary, and 23% of respondetns said it was normal. However, when asked if they thought that maintaining a national shipping companies would benefit me and my family, 39% of respondetns answered "normal" and 28% of respondetns answered "mostly". As for the cause of Hanjin Shipping's bankruptcy, 49% of respondents said that the owners' family members were immoral and incompetent, and 17.4% of respondetns said that the shipping market conditions deteriorated. Regarding the necessity of fostering the shipping industry, foreign currency acquisition and service balance improvement through export of shipping services accounted for 43.5%, and smooth transportation of import and export cargo accounted for 36.5%. When asked what kind of damage I suffered from Hajin Shipping's bankruptcy, 54.6% answered other (not much), and 14.5% said inflation. Abouve these results, this study gave implication in terms of public promotion and transparent business management.

• Journal of Korea Port Economic Association
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• v.34 no.3
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• pp.133-158
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• 2018

The role and ratio of national vessels in the global container shipping market have reduced significantly due to the bankruptcy of Hanjin Shipping in early 2017. All import-export companies, as well as container ports in Korea, are facing a crisis. The Trump's tariff and trade battles have had a negative impact on the increase in the North American cargo. However, Chinese and Japanese container shipping companies, which merged with domestic container shipping companies, and mega carriers such as Maersk and CMA CGM have benefited from the decline in shipping supplies due to the collapse of Hanjin Shipping, the world's 10th largest container carrier in Korea. The import/export freight trade in Korea is witnessing the increasing stronghold of foreign carriers. This scenario is expected to weaken Korea's negotiation powers with overseas shipping companies in domestic ports, such as Busan and Kwangyang, thereby making it more challenging to attract shipping carriers. This study compares the global container-shipping network in 2007 and 2017 by combining the network topology of the social network analysis and the economics of the liner shipping connectivity index (LSCI) and the container port connectivity index (CPCI) analysis. The findings of this study are that the role of the ports across the world can be identified, and CPCI has a high correlation with the centrality index and freight volume data. These findings can contribute toward the utilization of the meaning of the necessary centrality index without an additional centrality analysis. This study can be applied not only to the call strategy of container carriers but also to the alliance and development strategy of Korean ports.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2022.06a
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• pp.367-368
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• 2022

The shipping industry is sensitive to the global economy. Therefore, when events such as the global economic crisis occur, shipping market freight rates react immediately, and the long-term stagnation of the industry has been repeated accordingly. In particular, Hanjin Shipping's bankruptcy is an incident in which the nation has become aware of the chronic problems of the Korean shipping industry. The government is making great efforts to rebuild the collapsed shipping industry and become a global leader country. In order for the Korean shipping industry to grow into a global leader, it is important to appropriately respond to the crisis. To this end, it is necessary to establish and operate a crisis response system for the shipping industry at the national level.

• Special Issue of the Society of Naval Architects of Korea
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• 2005.06a
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• pp.144-150
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• 2005

The size of ship is being larger than the past in the shipping industry thanks to the increased quantity of goods transported by ship. Therefore, HHIC (Hanjin Heavy industries & Construction co., LTD) invented innovative construction method, so called 'DAM', to build a ship which is longer than the length of the HHIC's dry dock. On Erection at the sea by the application of DAM Method, Squeezing & Detachment of A/F film may occur as a result of the wave and the constriction between A/F film pre-applied on the side shell and DAM's Rubber Packing. Thus, the test for finding the minimum curing time of A/F film was performed to protect Squeezing & Detachment of A/F film on the hull. To verify the soundness of paint and to find the optimum condition during the erection period of the DAM, laboratory test was carried out under no immersion condition through the application of various coatings on the Rubber Packing. And two methods were selected from the results of laboratory test for actual MOCK-UP Test. In addition, the test for the film profile per temperature of silicone A/F coat and the film Squeezing was performed.