Increased government intervention to provide financial support to struggling carriers could ultimately delay a much-needed restructuring of the container shipping sector, according to Alphaliner.

State aid might well delay the industry's recovery process, as shipping continues to grapple with the overcapacity problem.

Last week, the government of Taiwan approved a TWD60bn (USD1.9bn) funding package with preferential interest rates for Taiwanese shipping companies and it agreed to grant carriers reductions in various port dues. Yang Ming and Evergreen expected to be the main beneficiaries of these decisions. The move is part of a wider economic revitalisation plan, which also includes up to TWD500bn (USD15.7bn) in loans that are to be provided by local financial institutions.

The Taiwanese initiative follows the South Korean government's plan to establish a state-backed ship financing vehicle with an initial capital of KRW1tln (USD871m). Aiming to improve the financial health of Korean shipping companies, the new government outlet will in total provide financing of KRW6.5tln (USD5.7bn) to allow the country's shipping firms to acquire new vessels.

"The large amounts of financial aid which state-related entities in Taiwan and South Korea provided to protect the nations' ailing shipping lines, come amid a slump in earnings, while shippers have been spooked by Hanjin Shipping's bankruptcy," said Alphaliner.