Hanjin Shipping had about 600 billion won in unpaid obligations such as charter fees and terminal use fees as of end-August, before a South Korean court approved its court receivership, South Korea’s maritime ministry said.
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“There’s a legal black hole that has been created”, said Richard Ormond, an attorney at Buchalter Nemer who’s representing some of the many companies who have their goods stranded on ships at sea, such as electronics, textiles, and luggage.
Regulations at these sites make them less likely places where the ships can get stuck, Choi said.
The nation’s Financial Supervisory Commission has said operations of 79 of Hanjin’s vessels, including 61 container ships, have been disrupted.
Simon Heaney, Consultant and Research Manager at Drewry Supply Chain Advisors said that the loan will only have short-term effects and help to resolve the immediate effects now in the global supply chain.
As part of its efforts to gain legal protection for its ships, Hanjin has filed a Chapter 15 petition in a United States bankruptcy court in New Jersey.
The South Korean Government has also been asked to offer around 100 billion won of loans at low interest rates if Hanjin provides collateral, Bloomberg reported.
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.
South Korea hopes to salvage its ailing container shipping sector, which like ocean shipping worldwide has been battered by weak demand and overcapacity.
The confusion might sink some trucking firms that contract with Hanjin to deliver cargo containers carrying everything from electronics to vehicle parts from ports to company loading bays. Spokeswoman Corinna Romke declined to comment further. The company now operates over 60 regular lines world-wide, with 140 container or bulk vessels.
DP World, operator of the Fairview container terminal in Prince Rupert, and CN Rail have made arrangements to handle containers from the ship, provided owners of the cargo pre-pay for the handling, according to a statement form the Prince Rupert Port Authority.
Under the chapter 15 bankruptcy code, Hanjin creditors will not be able to seize the company’s overseas assets including in the US.
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An estimated 540,000 containers are expected to face delivery delays, according to the reports.
