Senator calls it a day in the face of impossible conditions

http://www.lloydslist.com/ll/news/senator-calls-it-a-day-in-the-face-of-impossible-conditions/20017614573.htm;jsessionid=31D6EEC6E12ACCC7B7E17EA0366CF498

HANJIN Shipping’s German subsidiary, Senator Lines said today that its shareholders had decided to call a halt to its liner services with immediate effect.

Germany-based Senator Lines GmbH, has been majority-owned by South Korea’s Hanjin Shipping since 1997.

Hanjin currently owns 80% of Senator Lines. The remainder is equally divided by B.I.G, a company invested by Bremen City, and Bremen-based ship financier F. Laeisz.

Senator Lines liner services comprised a group of chartered 3,650 teu and 2,700 teu vessels that were hired from parent company Hanjin.

Commenting on the decision to cease operations a Senator Lines spokesperson said: “After careful consideration for the need of rationalizing its business, especially under the deteriorating shipping market and the global economic recession, the shareholders and board of Senator Lines decided to process the service discontinuation. Moreover, Hanjin Shipping will be utilizing the slot previously provided to Senator Lines.”

A Hanjin spokesperson said it was too early to say if Senator Lines routes would be discontinued or how many layoffs may be involved.

After a number of difficult years from its establishment in 1987, Senator Lines managed to achieve a profit of $14m in 2007, and was hopeful of improving on that as liner shipping entered a new upward cycle.

In June 2008 the company said: “After a restructuring programme in September 2006, which cut services and management functions, the line is now weighing up the establishment of new services and expansion of the existing ones.

“The focus will be laid on the expansion of competitive new niche lanes and businesses to achieve a better-balanced business portfolio,” said commercial management director Jens Philippi.

But future growth was clearly not an option when the winter of zero freight rates hit the liner business at the end of last year, which was clearly the final nail in the coffin of Senator.