That figure includes one vessel seized in Singapore by a creditor, a company spokeswoman said.
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The chains are working to minimise delivery disruptions from cargo waiting to depart Asia, travelling on the ocean or arriving at ports, Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation trade group, said last week.
With its assets frozen, its ships are being refused permission to offload or take on containers out of concern tugboat pilots or stevedores wouldn’t be paid.
But it is reluctant to commit huge sums of taxpayers’ money, and hopes to orchestrate a takeover by Hanjin’s smaller rival, Hyundai Merchant Marine, which is already being restructured.
The bankruptcy of the Hanjin Shipping line is already causing turmoil at ports in the U.S. and beyond; cargo continues to be delayed at the point of origin and cargo-laden Hanjin ships are unable to get into ports.
Hanjin sought bankruptcy protection in the USA and South Korea last week.
Last week’s collapse of the world’s seventh-largest container shipper has caused deep anxiety among its clients over the fate of stranded cargo, and pushed up cargo rates.
Yim Jong-yong, the chairman of the Financial Services Commission, told reporters Monday that Hanjin’s owners including Korean Air Chairman Cho Yang-ho should take full responsibility, reiterating the Finance Ministry’s stance on Hanjin’s court protection filing.
South Korean regulators allowed share trading to be resumed Monday after Hanjin’s court receivership was granted, but the share price plummeted by the daily limit of 30 percent shortly after the market opened.
Holed beneath the waterline by slumping global trade and slowing growth in China, more than half of its fleet – 79 vessels – is either stuck in port or unable to dock, with authorities fretting the company will not be able to pay its bills.
Shares recovered to be traded 1.6 per cent lower at 1,220 won ($1.1) early Monday afternoon – but still 36 per cent lower from last month and almost 80 per cent lower from a year ago.
Hanjin filed for court receivership on Wednesday after its creditor banks chose to end financial support. Last week, creditors led by the Korea Development Bank rejected a plan by Hanjin Group to spend another 500 billion won ($447.2 million) to rescue the shipping firm, way short of Hanjin Shipping’s more than 6 trillion won ($5.37 billion) in debts. “But many experts’ view is that the possibility is low”, Yonhap quoted Yim as saying. If you would like to discuss another topic, look for a relevant article.
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