Wal-Mart Stores Inc., the world’s largest retailer, said it was too early to see what effect the Hanjin situation will have.
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Marilee McInnis, a spokeswoman for Wal-Mart, said, “Right now, we are waiting to hear the final determination on bankruptcy proceedings and the implications to their current assets before we will be able to assess any impact”.
The Federal Maritime Commission, an independent government agency that regulates the country’s worldwide ocean transportation, issued a statement saying it is aware that Hanjin Shipping has filed for court receivership and that this is “causing uncertainty among the American shipping community about cargo in transit with Hanjin”. The company is working through contingency plans, he said.
In Prince Rupert, Canada, Port Technology reported that a Hanjin ship was stranded at the terminal, with cargo operations halted. “So Hanjin’s case is rather a global public concern with a greater impact than other companies”. The Seoul-based company said one ship in Singapore had been seized by the ship’s owner.
South Korea’s ailing shipbuilders and shipping firms, which for decades were engines of its export-driven economy, are in the midst of a wrenching restructuring. Some ships are even now hanging out in worldwide ports, empty and waiting for cargo.
“Hanjin is a very solid company with a long history – the biggest shipping line in Korea and one of the top biggest shipping lines worldwide”, he said.
Hanjin claims about 7 percent of the Pacific market share, according to statistics provided by the Federal Maritime Commission.
However, with Hanjin vessels not now calling at the Port of Felistowe – it’s United Kingdom container bookings being handled on ships operated by allied lines – the number of ships using the port will not be affected by the company’s collapse.
More than 500,000 containers currently in transit on Hanjin vessels now face delays, although the Korean athorities are likely to seek a prompt resolution to the situation.
Hyundai Merchant plans to add four vessels to the US starting September 9, and nine on Europe routes later this month.
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’s bankruptcy was a major factor, he said.
Freight charges from South Korea surged about 50 percent after Hanjin Shipping filed for court receivership Wednesday, Korea Economic Daily reported, citing shipping industry officials it didn’t identify.
“We have been told the ships have been told to stop”, Louttit said, noting Hanjin can not pay its docking fees and terminal costs right now.
Since Hanjin filed for bankruptcy protection in a Seoul court Wednesday, terminal operators, ports, cargo handlers, truckers and others have refused to handle its cargo, not knowing if they’ll get paid.
Since Cho’s son Yang-ho took over in 2014, Hanjin Group has spent 1.2 trillion won ($1.07 billion) trying to save the troubled shipping company, which has foundered as freight rates have tanked due to weak demand and soaring global capacity. Hanjin Shipping, once Korea’s biggest shipping firm, has been deemed fit to survive.
“U.S. bound cargo is already being delayed at origin ports and Hanjin ships loaded with cargo idle unable to enter US ports, containers are being detained on arrival clogging already congested ports and preventing merchandise from reaching store shelves”.
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But there is still hope for Hanjin containers at the Husky Terminal in Tacoma.
