Reuters quoted Ilana Volkov, an attorney for Hanjin, as telling the USA bankruptcy court that the company had at least $10m authorized by the Korean courts to allow four vessels off the United States to come into port and unload their cargoes.
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While the Us bankruptcy court has prevented Hanjin ships being seized if they enter USA ports, it should also allow the ships to leave port once unloaded and for cargo holders to recover their property, Samsung argued ahead of the hearing on Friday.
Last week, Hanjin shipping, one of the largest container shipping lines in the world, filed for bankruptcy protection.
While Hanjin’s filing was not the only factor (China’s upcoming Golden Week holiday is also contributing), the shipping price from China to the US west coast rose from $1,100 per container to as much as $1,700, and the price from China to the USA east coast from $1,700 to $2,400 last week. In court papers filed Thursday, Samsung Electronics said “cargo owners are being held hostage”, while Maher Terminals said it “is not required to extend free credit to Hanjin, and should not be forced to”. Media outlets are reporting that some Hanjin vessels have been arrested and more are expected to be arrested by charterers, port authorities or other parties with maritime claims.
About 110 workers hired by Hanjin’s contractors got letters terminating their employment by the end of this month, said Song Deuk Hwan, a union leader at Busan’s new port with about 200 members.
Dozens of massive container ships are stranded at sea, looking for a place to dock after one of the world’s largest shipping companies went bankrupt.
The crisis for the shipper is creating “a ripple effect” that could impact retailers’ shelves come the crucial holiday shopping season. As many as 85 Hanjin ships are stranded around 50 ports in 26 countries, according to the company. Numerous caucus members represent the Long Beach and Los Angeles ports affected by the Hanjin situation.
Hanjin Shipping was handling almost 8 percent of the trans-Pacific trade volume for the US market, and with its container ships marooned offshore, major retailers have been scrambling to devise contingency plans to get their merchandise into stores.
Concerns that the company may not be able to pay docking fees have left 85 cargo ships from Hanjin’s fleet floating in worldwide waters, unable to unload their cargo and even running out of food.
On the surface, the bankruptcy fate of a South Korean shipping company doesn’t look like it would be more than a minor blip on the radar of the overall US economy.
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As the business faces up to $5.5 billion in debt, its parent company Hanjin Group has chipped in $90 million in relief funds for the cargo costs. Hanjin Shipping is seeking stay orders to prevent its ships from being seized by creditors in over 40 countries. So if you want your cargo, you got to pay me through the nose for the privilege of taking the container out, ‘ ” he says.
