Newsroom Blog
Hanjin Heavy tactics
By Lloyds List Comment
Thursday 28 January 2010
GEORGE Economou, the head of Nasdaq listed dry bulk and offshore asset drilling giant DryShips, told Lloyd’s List today that he had taken over management of a containership that had been built by Hanjin Heavy Industries for the troubled French line CMA CGM.
The Korean shipbuilder hastily sold the CMA CGM Kessel for a reported $41m to a third party, and Mr Econonou has admitted that the 6,500 teu vessel, now named Miramarin, is being managed by Cardiff Marine, a company that he founded.
Mr Economou has denied any personal investment in the ship but he is known as a major strategist and his foray, probably no more than a feeler, bears discussion.
The Miramarin was bought by a Marshall Islands-registered company called Southwest Container Lines. Despite Mr Economou’s demurral on the investment, sources close to him would not rule out a direct financial involvement with this and other containerships in the future. As it stands, DryShips has a $600m warchest and is known to be searching for a sound investment in a distressed sector that will likely rebound over the next two years.
With no discernable direct investment into the vessel and a management contract only, it appears to be a bit of canny research.
A more important message from this deal comes from Hanjin Heavy. Last year, Hanjin pushed the conflict over late payment on vessels being built for Islamic Republic of Iran Shipping Lines into the public eye by offering them for sale. Hanjin and IRISL finally came to a deal for two of the vessels and are negotiating a settlement for the third. Its sale of the CMA CGM newbuilding reflects similar impatience with the French line.
Hanjin is shedding jobs amid a depressed newbuilding market. Its tactics suggest that it is willing to play the heavy and risk some loss to resolve its caseload of partly financed newbuildings now in limbo because troubled shipowners are unwilling or unable to pay.
Hanjin’s approach may be followed by other big shipyards. This could open new avenues of investment for Mr Economou and enterprising players like him.
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