South Korea’s 11th-largest conglomerate said the funds are being raised to “normalize the unloading of Hanjin Shipping’s containers” to “minimize the damage to exporters and importers”. “So those toys held up in container boxes will be able find their way to consumers”.
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South Korea’s Hanjin Shipping Co. containers are seen in the Port of Long Beach, Calif., on Thursday, Sep 1, 2016. According to the labor union of Hanjin Shipping on Monday, about 50 container vessels and bulk carriers are now on standby at outer ports for an indefinite period of time as they are denied of call at ports. Whether Hanjin can fend off ship seizures will depend on the jurisdictions involved, lawyers said.
Reuters reported the government-backed creditors are ready to provide Hanjin Shipping with about $90 million of loans, if the parent company Hanjin Group is willing to provide collaterals. Offloading the containers may help customers like LG Electronics get their televisions and other cargo back on land and book the products onto other ships or for transport by land. Half of the estimated crew members are Hanjin Shipping employees while the remaining are foreign sailors that have been temporarily hired. Hanjin Group, owner of the shipping line, is in discussions with Hanjin Shipping’s main creditor, Korea Development Bank, about providing financial aid and collateral, Asia Business Daily reported, citing the group. The stock has plunged 62 percent this year, trimming its market value to 341 billion won, while Korea’s Kospi index has gained 5.4 percent in the period.
Hanjin’s receivership filing has prompted ports around the world to block access or refuse service to dozens of the company’s ships on fears they won’t be paid, stranding cargo. Spokeswoman Corinna Romke declined to comment further.
On Monday, the company said it would seek bankruptcy protection in more than 40 countries to protect its fleet from being repossessed. Larger operator Hamburger Hafen & Logistik AG, which handles three out of four containers passing through Germany’s biggest port, is closely monitoring the situation, spokesman Torsten Engelhardt said by phone.
The collapse of the world’s seventh-largest container shipping company has caused much agonizing among its clients over the fate of stranded cargo. The South Korean giant filed for bankruptcy protection on Wednesday and stopped accepting new cargo.
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Parent company Hanjin Group on Tuesday also said it would inject $90m in fresh funds to resolve the disruptions to the cargo transport now stuck at sea.
