Dive Brief:
- Taiwan’s government has approved a $1.9 billion relief package to Taiwanese companies Evergreen Marine and Yang Ming Marine Transport, two of the world’s biggest container operators, the Wall Street Journal reported on Wednesday.
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Evergreen and Yang Ming, the two shipping lines that move the majority of Taiwan’s exports, have posted a combined loss of more than $580 million thus far this year. A possible merger between the two companies was halted due to the fact that they belong to competing global shipping alliances.
- Both Evergreen and Yang Ming are considered integral to the country's economy, and are receiving credit lines with an interest rate of approximately 2.9%.
Dive Insight:
With the impact of Hanjin's sudden announcement of bankruptcy still fresh in everyone's minds, governments are beginning to step in to avoid any kind of repeat within the shipping industry.
Hanjin's perceived complacency contributed to the South Korean government's decision to allow it to sink. Taiwan's choice to offer support implies a different perspective, wherein the role of the shipping line rather than its attitude determines the degree of support provided. The bailout is believed to be an act of mercy toward a suffering industry, one which will also provide stability: as in an "as the big two go, so goes the industry theory."
