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Korea shipping companies cry for help

Korea shipping companies cry for help
Seoul: Hoping for a slice of the government help that has been offered to its shipbuilders, Korea's shipping industry urged the government to extend financial support to help local shipowners and operators cope with an industry-wide slump.

"It is urgent to improve the vicious cycle of liquidity facing local shippers," said Lee Jong-chul, chairman of the Korea Shipowners' Association. "The shipping industry is very vulnerable to an economic cycle, which means shipping firms cannot survive without financial support." 

Faced with falling shipping rates and a decline in trade, most South Korean shipping lines, including Hyundai Merchant Marine Co and STX Pan Ocean Co, suffered losses in the second quarter, mainly due to lower shipping rates and falling trade volume alongside slumps in Europe and other major economies.