A faint gleam of hope on the container rate of Hanjin Shipping

Eugene Investment & Securities, a Korean securities firm, announced the container rate of Hanjin Shipping will climb smoothly in the second half of this year. Eugene measured a 'buy' recommendation and set the target price at 13,000 KRW.

Mr. Ik-Chan Joo, an analyst for the company said, "Shippers tend to load their cargo before New Year's Day in the lunar calendar while stocktaking and rates increase," and "CCFI and SCFI increased 1.7% week on week, 2.9% week on week each in the first week in January."

He added, "Although rates could decline temporarily after New Year's Day in the lunar calendar, it will rise again," and "Because not only several American ports' decreased rates of demand is lowering, but also the average for the sailing speed of container ships is getting slower, so increased rates for supply naturally slows down."

Mr. Joo also mentioned, "The American economic growth rate has risen slightly since early January, so the cargo volumes from Asia to America will increase too," and "On the other hand, the Euro-zone economic growth rate will rise in the third quarter, so the cargo volumes from Asia to Europe will increase in the second half." < 김보람 기자 brkim@ksg.co.kr >