The approval will enable Hanjin Shipping vessels to dock at USA ports without fear of being seized.
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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. With expectations high that Hanjin will eventually be liquidated, there is little clarity on just how the problem of cargo stranded ahead of the peak-year end shopping season will be resolved. Hanjin has identified 14 US -bound ships in bankruptcy filings, including the Hanjin Greece and two other vessels now near the Southern California coast. Last week, creditors led by the Korea Development Bank rejected a Hanjin Group proposal to rescue the shipping firm by spending $447.2 million, far short of Hanjin Shipping’s debts of more $5 billion. Hanjin Shipping declined to comment. Hanjin Group is considering the offer.
Patrick Kelly, secretary-treasurer of Teamsters Local 982, said many truck drivers work as independent contractors and have not earned an income while waiting for the ships. That’s created a weird situation on the high seas for 85 Hanjin ships that have been effectively marooned offshore as ports in the U.S., Asia and Europe have turned the company’s ships away.
One Hanjin captain operating a ship in global waters near Japan said his vessel has been given permission to enter a Japanese port Wednesday to unload cargo, but will be required to head back out soon after. The move will prevent US creditors from taking legal action against Hanjin’s ships and other assets, while the company undergoes restructuring in Korea.
Also on Wednesday, a USA federal judge granted Hanjin temporary protection from creditors, which would allow for three Hanjin ships stranded at the port complex of Los Angeles and Long Beach to dock without fear of being seized, according to a report by the Associated Press.
LOS ANGELES – Hanjin Shipping Co won a provisional ruling protecting its assets in the U.S. against creditors while the shipping line proceeds with its reorganisation in South Korea.
Volkov said at least $10 million was authorized by a Korean court to begin servicing the four ships.
Meanwhile Reederei NSB, which manages seven Hanjin vessels said one of the ships had been arrested in Vancouver.
The tech giant is considering chartering 16 cargo planes to fulfill its shipment contracts, principally to the United States.
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“Retailers’ main concern is that there is millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this”, said Jonathan Gold, vp/supply chain for the National Retail Federation.
