Still reeling from the impact of the world’s seventh-largest shipping line collapse, shippers and cargo owners are struggling to recover. With close to half a million containers stuck on the water and ports refusing Hanjin vessel calls, progress to resolve the situation seems slow in coming. Hanjin filed for bankruptcy protection August 31st, however they did so in South Korea, which does not provide globalized protection. While they are in the process of filing for bankruptcy protection in all other locations where the container line operates, it is a race to avoid creditors from seizing their ships.
To resolve this crisis, the steamship line has turned to the South Korea’s Ministry of Oceans and Fisheries and has issued a plan to rescue the stranded vessels and the $14 billion dollars in goods containerized on board. The plan involves Hanjin’s parent company, The Hanjin Group, doling out over $100 million dollars to retrieve cargo from the stranded vessels. However, with the South Korean government refusing to bail out the shipping line, it appears that liquidation is a likely outcome. Hanjin has issued an apology statement declaring, “We offer our deep apologies for the damages inflicted on many parties following our decision to apply for court protection,” South Korea’s largest container line said. “We will do our best to resolve the matter to remove the distress caused to the parties concerned.”
We are working closely with our offices around the world to handle this predicament with as little disruption as possible. We will keep you informed of the situation as we watch how the carrier’s actions play out.
In our upcoming newsletter, we offer more advice and information on managing your exposure when a steamship line declared bankruptcy. Please feel free to contact us should you need any immediate information or assistance.
For more information, please see attached JOC article.