Stranded Hanjin Fleet Delivers Japan Shippers Brief Reprieve

  • Bond risk of Kawasaki Kisen, Mitsui OSK drop on Hanjin trouble
  • ‘September is a peak season’ for shippers, Mitsubishi UFJ says

Hanjin Shipping Woes Give Japanese Rivals Brief Reprieve

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Vessels stranded in the ocean belonging to a South Korean shipping company that filed for court protection spell higher profits and lower bond risk for troubled Japanese competitors -- at least for a while.

The Shanghai Shipping Exchange index has climbed to the highest this year since Seoul-based Hanjin Shipping Co. filed for court protection on Aug. 31. The cost to protect against non-payment by Kawasaki Kisen Kaisha Ltd. has fallen 11 basis points this month to 139 on Tuesday, the lowest since November, according to CMA data. Credit-default swaps of Mitsui OSK Lines Ltd. were at 129, an 11-month low.