Janggeum Maritime, a domestic very large crude carrier (VLCC) operator, is pushing for joint management with Switzerland's MSC, the world's largest shipping line.
According to the shipping industry on the 20th, Janggeum Maritime is pursuing a plan under which MSC will hold half of Janggeum Maritime's equity through a paid-in capital increase and, on that basis, run the company jointly.
To that end, it is proceeding with approval procedures with the Korea Fair Trade Commission and other relevant authorities. Once the process is completed, MSC's subsidiary SAS LUX will hold Janggeum Maritime equity.
Janggeum Maritime is a company 100% owned by Vice Chairman Jeong Ga-hyeon, the son of Jeong Tae-sun, chairman of Sinokor Merchant Marine, and since the end of last year it has aggressively expanded its VLCC fleet and is said to be operating more than 100 VLCCs.
Given that about 880 VLCCs are in operation worldwide, that means Janggeum Line operates more than 10%.
In the industry, as VLCC charter rates that had been on the rise have surged even more sharply due to the U.S.-Israeli invasion of Iran, MSC is seen as teaming up with Janggeum Maritime to expand its portfolio.
As the Strait of Hormuz has been closed due to the fallout from the U.S. and Israel's war with Iran, VLCC charter rates are around $500,000 per day (about 750 million won).
MSC holds about a 21% share of capacity in the container ship market. It is a Swiss family-run company led by Chairman Gianluigi Aponte.
A Janggeum Maritime official said, "We are moving forward in the form of raising capital from MSC through a paid-in capital increase and sharing equity for joint management," adding, "The size of the paid-in capital increase is still being coordinated, and the secured funds will be used as investment capital."