Hanjin is the largest customer at Seattle’s Terminal 46, but as of 2 p.m. Wednesday, the terminal posted an alert saying it would not receive any Hanjin deliveries, and Husky Terminal in Tacoma is not accepting any exports or empty containers, but would unload imports.
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Some 44 of Hanjin’s 98 ships have been so far denied access to ports while one ship has been seized, a company spokeswoman said on Friday.
Another the ship, the Hanjin Montevideo, was scheduled to depart Thursday morning from Long Beach but is being anchored in the breakwater. In a statement, FSC officials said they believe the filing’s effect on domestic financial markets will be limited.
The failure of South Korean global containerline Hanjin is having an effect in Australia, as it is elsewhere in the world.
“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”, NRF vice president for supply chain and customs policy Jonathan Gold says.
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. One vessel has also been seized by a creditor in Singapore while firms in the USA have launched legal action against Hanjin to seize vessels and other assets over unpaid bills.
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.
Hanjin has been losing money for years. With Hanjin Shipping forced to file for corporate rehabilitation after its creditors cut off their financial assistance, a Singapore court on August 30 took control of the Hanjin Rome, a 5,308 TEU container ship owned by the company that was in Singapore harbor.
“The government will swiftly push forth corporate restructuring following the rule that companies must figure out how to survive and find competitiveness on their own while taking responsibility”, said Finance Minister Yoo Il-ho. And it’s responsible for about 5 percent of USA shipping trade. Rates for West Coast-bound ships could go up 54 percent or more, while East Coast-bound rates could see a 50 percent increase.
About 10 more were impounded at Chinese ports, including Tianjin and Shanghai, for failing to pay service providers, the Korea International Trade Association said. It is said that the establishment of a single profitable ocean line costs 1.5 trillion won.
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Poskus predicted that the current price hikes will be temporary, perhaps only lasting a month or two. However, to minimize the blow, they also said the government will actively look for ways for Hanjin’s rival, Hyundai Merchant Marine company, to take over ships, business networks and its workforce. This includes the preparation of derivative works of, or the incorporation of such content into other works.
