The Seoul Central District Court requested counterparts around the world for an order to suspend judicial proceeding for Hanjin Shipping vessels after the shipper has filed for court receivership.
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LG Electronics said it expected some delays on home appliance shipments, since Hanjin was handling about a fifth of its North America-bound cargo.
Financial Supervisory Commission Yim Jong-Yong on Friday met with KDB and Hyundai Merchant Marine officials and asked Hyundai to help ease cargo disruptions, Yonhap news agency said.
“One of the problems is that there is a language barrier with the attorneys in South Korea as well as a different judicial system”, said Ormond.
South Korean regulators allowed share trading to be resumed Monday after Hanjin’s court receivership was granted, but the share price plummeted by the daily limit of 30 percent shortly after the market opened.
Ormond said the USA government was likely to take action to establish a receivership for the company here as well to put Hanjin’s assets under court protection, keeping them in the United States and better protecting American creditors.
“The impact on importers and exporters is having a ripple effect throughout the global supply chain”.
Retailers main concern is that there [are] millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this, said Jonathan Gold, the groups vice president for supply chain and customs policy.
Hanjin has been losing money for years.
The company said Friday that about a third of its cargo fleet – some 40 vessels – is marooned at sea or has been impounded at ports.
All companies involved in serving Hanjin vessels, such as fuel and food suppliers, will most likely demand advance payments and guarantees before continuing cooperation, Seydlitz- Kurzbach said.
A senior official at the USA government’s shipping watchdog has warned Hanjin, other shippers and freight forwarders against taking the opportunity to price gouge cargo customers.
“There’s nothing we can do directly”, said Robert Krieger, president of Norman Krieger, Inc., an L.A. -based global freight forwarder and customs broker.
“What’s most desirable, of course, is for Hanjin Shipping to revive itself”. They had hit a record low on Monday.
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Shares recovered to be traded 1.6 per cent lower at 1,220 won ($1.1) early Monday afternoon – but still 36 per cent lower from last month and almost 80 per cent lower from a year ago.
