Hanjin Shipping shares jumped as much as 28 percent on Tuesday morning before trimming their gains to be up 20 percent at midday.
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Hanjin Shipping’s assets will in the meantime remain frozen, and the court-appointed new management is required to come up with a new rehabilitation plan by November 25.
Regulations at these sites make them less likely places where the ships can get stuck, Choi said.
South Korea’s top financial regulator pressed the Hanjin Group on Monday to take full responsibility for the delivery of cargo under existing contracts signed by its affiliate Hanjin Shipping Co.
“The government is trying to extinguish the most immediate fire” to help ease some supply-chain bottlenecks, Kim Tae Il, a research analyst at the Korea Maritime Institute in Busan, said Monday. “So those toys held up in container boxes will be able find their way to consumers”.
As part of its efforts to gain legal protection for its ships, Hanjin has filed a Chapter 15 petition in a USA bankruptcy court in New Jersey.
The filing will prevent creditors from seizing Hanjin’s U.S assets while the company winds up business in Korea.
Shares in South Korea’s foundering shipping giant Hanjin were volatile on Monday after filing for bankruptcy protection in Seoul and reportedly the USA, rocking the troubled maritime freight industry. With about 5 percent of ships in the global trading fleet sitting idle, he believes there is room to take over Hanjin’s capacity and carriers already are discussing the possibility of adding ships.
The crisis has badly hit the oversupplied worldwide shipping industry, which is suffering from its worst downturn in six decades, and has sent ripples as far as the U.S. economy, with retailers fearing it may damage Christmas trade.
The Long Beach Board of Harbor Commissioners said Sunday that its members were monitoring the Hanjin situation around the clock to try to ensure the smooth flow of cargo.
The confusion might sink some trucking firms that contract with Hanjin to deliver cargo containers carrying everything from electronics to auto parts from ports to company loading bays. Spokeswoman Corinna Romke declined to comment further.
The nation’s Financial Supervisory Commission has said operations of 79 of Hanjin’s vessels, including 61 container ships, have been disrupted. Hanjin said last week that one ship had been seized in Singapore.
“That is the Hanjin Group’s problem”, he emphasized in a monthly press briefing.
The Wall Street Journal says the application was lodged last Friday, just two days after the company applied for protection in Korean courts.
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For US retailers, Hanjin’s filing brings concerns about products’ arrival in time for the Thanksgiving-to-Christmas shopping period.
