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Fall of Hanjin shipping sparks uncertainty for world sea freight industry

  • Publish Date: Posted over 7 years ago

The fall of Hanjin shipping line has caused confusion in ports and retailers around the world, with giant container ships stranded and merchants worried if the tonnes of goods being transported by the South Korean company will reach shops. Hanjin filed for bankruptcy protection last week and stopped accepting new cargo. With assets frozen, the company’s ships were barred from offloading or taking containers abroad because there were uncertainties regarding who would pay tugboat pilots or stevedores. Hanjin is the globes seventh biggest container shipper, owning around 3% of the world’s container capacity and the news left cargo destined to and from Asia with an uncertain future. It is believed that 10 of Hanjin’s ships had been seized at Chinese ports. Seeking to limit the damage, a South Korean court said it would undertake measures to revitalise the carrier, which would enable Hanjin to begin legal action abroad to keep its vessels and other assets from being seized. However, the court action has been viewed as largely procedural and a liquidation of assets is thought to be likely. Hanjin’s banks opted to end financial support and many of its ships were denied entry to ports or blocked from docking as container lashing providers worried they would not be paid.