According to the shipping industry on the 20th, Janggeum Maritime recently signed a preliminary investment agreement to transfer more than 50% of its stake to MSC and begin joint management. Under the structure, MSC and Janggeum Shipping will each hold 50%, and the two sides will jointly run the company.
Led by Vice Chairman Jeong Ga-hyeon, the son of Janggeum Shipping Chairman Jeong Tae-soon, Janggeum Maritime is a key affiliate responsible for the group’s tanker business. It has rapidly expanded its presence in the VLCC market through aggressive vessel purchases. The industry estimates Janggeum Shipping owns one out of every four VLCCs worldwide, and some analyses say it operates about 40% of the world’s VLCCs that are available for service.
MSC’s move is widely seen as a strategic push to expand beyond its container-focused business into crude oil transport. MSC ranks No. 1 in the container ship market with about a 21% share by capacity.
Industry officials said the transaction could go beyond a simple equity investment. With the top container carrier moving more directly into tankers, they expect shifts in freight-rate bargaining power and supply coordination in the VLCC market.
The deal still requires approvals from regulators in multiple countries. Authorities in Greece and Cyprus have begun reviews, and the transaction must also clear competition scrutiny in major jurisdictions, including South Korea. Whether the deal could raise monopoly concerns as market power grows is expected to be a central issue.
* This article has been translated by AI.
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