The group said that Hanjin’s ships, and the cargo they carry, have mostly been seized by its creditors, adding that the ships are having to wait outside seaports before being given further instructions on whether they are permitted to enter.
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Hanjin filed for receivership in South Korea last week after attempts to bail out the indebted company failed. Separately, South Korea’s ruling Saenuri Party asked the government to offer about 100 billion won of low-interest loans if the group provides collateral.
“The court said that a total of 200 billion won (US$173.9 million) would be necessary but we have reached a conclusion that 100 billion won to be prepared by the Hanjin Group will be enough to resume unloading operations and address the situation in the short term”, one of the creditors explained, adding, “It is not appropriate to spend tax money to pay the company’s debt with the company unlikely to come back to normal”. “This is a very positive step for our customers”.
The shipping crisis surrounding the Korean company, Hanjin Shipping Co., threatens to impact businesses and consumers globally by leaving more than $14 billion in products adrift at sea, according to reports. Lars Jensen, the CEO of Sea Intelligence Consulting, which focuses on container shipping, says the container ships are operated by the South Korean-owned Hanjin Shipping company.
A U.S. court on Tuesday granted temporary protection to Hanjin, allowing its ships to dock at USA ports without the risk of being seized.
“The number of people who are providing services as part of a complete logistics chain, it is staggering”, said Charles Gale, deputy city attorney in Long Beach.
Brokers said the problems extend to carriers with vessel-sharing deals with Hanjin. Hanjin Shipping, the world’s seventh largest ocean shipper is owned by a huge family-dominated conglomerate, Hanjin Group headquartered in Seoul.
The 381-acre former naval property brings in about $81 million for the port, but the lease expires in 2027.
The disruption to Hanjin’s deliveries comes at a critical time for North American retailers, which are stocking merchandise for the holiday shopping season, said Greg Wilson, director of government relations for the Retail Council of Canada in B.C. According to Gold, the vessel appeared to have dropped anchor after it had already unloaded its cargo and was about to leave the port.
In addition, there is fear that the ships or its contents maybe seized by the company’s numerous creditors.
The country’s Finance Minister Yoo Il-ho in a meeting this afternoon discussed the government’s role in minimizing losses in the maritime industry and economy as a whole caused by Hanjin’s demise.
Chapter 15 is meant to allow a company to seek recognition by US courts of orders issued overseas and to ask USA judges to assist in a foreign corporate debt restructuring. “It is vital to Samsung’s and USA retailers’ interests to avoid major disruptions in production particularly ahead of the holiday shopping season”.
Hanjin’s parent company pledged million to help resolve the disruptions.
The TTI terminal moves about a quarter of the goods coming through the Long Beach port annually, handling 2 million Twenty-foot Equivalent Units out of the 7 million to 8 million TEUs each year, Gold said. Retailers in the United States depend heavily on it to bring such things as shoes and flat-screen televisions from the Pacific Rim, a top trading partner for the USA market, especially California.
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The South Korean shipping company operates 97 container ships, the giant workhorses of global trade that deliver everything from computers and clothing to televisions and toys.
