Wheat, steel shipments hit by STX Pan Ocean receivership

Thu Jul 4, 2013 5:40am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Half of South Korean firm's bulk ships not operating-source

* Wheat shipment delays could threaten flour production

* POSCO looking at other shippers or land routes for steel

By Joyce Lee and Meeyoung Cho

SEOUL, July 4 (Reuters) - Around 200 bulk carriers operated by South Korea's STX Pan Ocean Co Ltd are out of action after the firm went into receivership last month, a company source said, affecting shipments of commodities such as wheat and exports of steel.

STX Pan Ocean, which owned 95 ships and chartered about 300 vessels, went into court receivership on June 17, in the latest blow to the debt-saddled STX Group.

"Only about half of our roughly 400 vessels remain in play, with 16 vessels arrested, 10 ships stalled due to lack of fuel, and most of the rest returned as charter contracts ended without extension," said a STX Pan Ocean source with direct knowledge of the matter.

The source declined to be identified as he was not authorised to speak to the media.

An STX spokesman declined to comment.   Continued...