The disruption – which has reportedly occurred in other ports across the world – came after Hanjin filed for bankruptcy protection Wednesday after its creditors rejected a restructuring plan.
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Jeff Bergmann, managing director of the Toy Shippers Association, said his customers are fortunate that only about 20 containers are on Hanjin or affiliated vessels.
A South Korean court has ordered the start of rehabilitation proceedings and set a November 25 deadline for the carrier to submit a plan, appointing Hanjin Shipping CEO Suk Tai-soo as trustee.
The potential for cargo to be stranded, perhaps indefinitely, is unnerving for many – particularly as industry insiders and analysts believe that Hanjin has little chance of being rehabilitated and its assets will eventually be liquidated.
“There are no Hanjin vessels en route to Charleston that we’re aware of, and therefore don’t anticipate any arrest situations”, said SPA spokeswoman Erin Dhand.
“There is a loss of faith among customers”.
Freight-forwarding firms, which organize shipments, may be held liable for customer cargo that doesn’t arrive and are also anxious about the recovery of funds paid to Hanjin in advance for services promised.
Hanjin’s vessels, sailors and cargo are stuck in a maritime limbo as ports, wary they will not be paid for their services, refuse to let them dock and refuse to handle or free cargo already landed.
South Korean container shipper Hanjin Shipping Co Ltd said on Friday its membership in the CKYHE shipping alliance has been suspended, adding to the troubles of the country’s top shipping firm. Almost a dozen Hanjin vessels have been seized by creditors, ports authorities and others in China and Singapore in the wake of the bankruptcy announcement.
By September, the global shipping industry is already into what is its busiest time of the year ahead of the Christmas season.
But as of Wednesday afternoon, the Port is no longer receiving Hanjin containers -imports or exports-until further notice. A fourth vessel that was supposed to leave Long Beach on Thursday morning remained anchored inside the breakwater.
“The impact on importers and exporters is having a ripple effect throughout the global supply chain”, Retail Industry Leaders Association President Sandy Kennedy stated in a letter to commerce officials.
USA retailers are anxious about keeping their shelves stocked after a major South Korean shipping company filed for bankruptcy protection. “Some of it is sitting in Asia waiting to be loaded on ships, some is already aboard ships out on the ocean and some is sitting on USA docks waiting to be picked up”.
Lashing operations for two Hanjin ships have resumed in Busan as of 10 a.m. Friday, the ministry said, while another Hanjin vessel scheduled to arrive in Incheon at 5 p.m. Friday will be able to get relevant services to enter the port and offload cargo. The Seoul Central District Court in South Korea is expected to decide in coming weeks whether Hanjin Shipping should be dissolved. The Wall Street Journal reports USA exporters are jostling to rebook containers with other carriers to reload their cargos, ahead of the retail boom that accompanies Thanksgiving, Hannuka and Christmas.
Ocean freight shipping fees between China and the United States have soared as much as 50 percent since the bankruptcy was announced, although experts expect the increase to be temporary.
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The price from China to west coast ports rose from $1,100 per container to as much as $1,700 on Thursday, while the cost from China to the East Coast jumped from $1,700 to $2,400, he said.
