The Port of Virginia on Friday updated some policies announced on Wednesday, reflecting Hanjin’s connections with some other big ocean carriers that together make up the “CKYHE” alliance, by which they share space on one another’s ships.
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KDB and the other creditors – who were not identified in the various news reports – rejected the plan, saying it was little improved over an earlier version Hanjin had submitted, and would likely generate no more than 500 billion won.
One Japan-based trader handling Middle East aluminum said his company had “switched away from Hanjin some time ago”, and so was not impacted.
The crisis has badly hit the oversupplied worldwide shipping industry, which is suffering from its worst downturn in six decades, and has sent ripples as far as the United States economy, with retailers fearing it may damage Christmas trade. The company is working through contingency plans, he said.
Hanjin’s bankruptcy was a major factor, he said, although prices also were affected by an upcoming Chinese national holiday, Golden Week, that would close factories, and by shipping lines sidelining vessels to reduce overcapacity.
Hanjin Shipping Co., a South Korean shipping line, declared bankruptcy in South Korea on August 31, putting the company’s entire shipping operation in limbo. Hanjin ships 18 percent of Korea’s exports to North America and 22 percent of imports from the region. “Truckers haven’t been able to return their empty containers or chassis at the Hanjin terminal and now they are trying to figure out what to do”, she said.
SEOUL, South Korea (AP) – South Korea’s top ocean shipping company, Hanjin Shipping Co., is in bankruptcy proceedings following years of losses, as its family-dominated controlling conglomerate struggles to adapt to an era of slowing growth.
“This situation has come as a result of tremendous downward pressure on freight rates for the past several years”, he said.
Hanjin Shipping’s local-currency notes due June 2017 tumbled to 13.4 percent of face value as of 3:29 p.m.in Seoul, according to Korea Exchange prices, after fetching 90 percent in March.
“Hanjin’s volumes and revenue contribution are marginal and all our accounts are up to date and settled”, Christian Gonzales, senior vice president and head of Asia Pacific Region and MICT, told the Manila Standard. But Hackett said that will be a short-term thing that is focused primarily on Hanjin customers.
Northwest ports, markets and retailers are scrambling after Hanjin Shipping Inc. filed for bankruptcy protection Wednesday.
The possibility of a liquidation can’t be ruled out, though a court will determine the fate of Hanjin Shipping, said Yim Jong Yong, chairman of South Korea’s Financial Services Commission, in comments e-mailed by the regulator.
The Hanjin group suffered a severe blow to its reputation in 2014 when Cho Hyun-ah, Cho Yang-ho’s daughter and a vice president of Korean Air, threw a tantrum over how macadamia nuts were served to her on a flight and ordered the plane she was on to return to the gate at John F. Kennedy Airport in NY.
“In 2001, Cho Yang, a much smaller Korean carrier, went bust and it took six months before a mere 200 containers, handled by a single freight forwarder, could be taken off to ports”, said Lars Jensen of Copenhagen-based SeaIntelligence Consulting.
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The bankruptcy is having “a ripple effect throughout the global supply chain” that could cause significant harm to both consumers and the US economy, the association wrote.
