Hanjin’s bankruptcy was a major factor, he said, although prices also were affected by an upcoming Chinese national holiday, Golden Week, that will close factories, and by shipping lines sidelining vessels to reduce overcapacity.
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The largest container line bankruptcy in history already has other carriers scrambling to accommodate shippers, too.
Hanjin’s ships are now idling outside West Coast ports like those at Long Beach, Los Angeles, Seattle and others unable to unload their containers out of fear creditors will seize the ships. KING-TV reports that the terminal wasn’t releasing empty containers and exports after Wednesday’s announcement.
Major U.S. ports are forecast to handle 1.61 million 20-foot equivalent units this month, down 0.6 percent from the same month previous year, according to the retail federation.
“The most important thing for us is that customers get their goods, so we will continue to handle Hanjin ships”, DP World Australia chief commercial officer Brian Gillespie says.
The bankruptcy is having “a ripple effect throughout the global supply chain” that could cause significant harm to both consumers and the USA economy, the association wrote.
“The company is internally looking into measures in case our cargo gets stranded while it’s being shipped”, LG said in the email in a response to a Bloomberg query.
Some Hanjin ships headed to USA ports were reportedly left stranded off coasts amid concerns that port fees would not be paid or that creditors would arrest ships at ports, causing congestion. Three container security service companies in the southern city’s port are refusing to dock its container vessels until the company pays bills due.
As Hanjin Shipping is the world’s seventh largest sea carrier, its fallout has caused turmoil not only in Korean cargo, but also for global trade. Other manufacturers of major mechanical and large-electronic products, including Samsung, have also confirmed feeling the Hanjin-related pinch.
Any Hanjin-shipped cargo that’s already on the terminal before the policies take effect will not be held up. That’s when a Korean court accepted Hanjin Shipping’s receivership application that had been filed the day before. Hanjin said on Friday that number was incorrect.
“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.
“Retailers always have robust contingency plans, but this degree of uncertainty is making it challenging to put those plans in place”, said Jessica Dankert, senior director of retail operations for the Retail Industry Leaders Association, a trade alliance with members including companies like Best Buy, Wal-Mart and Target.
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Seoul, as part of a state-led drive to restructure ailing industries, has pressed Hanjin and Hyundai Merchant Marine to revamp their business and persuade creditors to extend loan terms. Korean Air loaned funds to Hanjin Shipping and bought shares in the container line in 2014 to become the biggest shareholder with 33 percent.
