Freight News, Sea

Updated: Hanjin throws in the towel

[ September 5, 2016   //   Chris ]

The global recession and global overcapacity claimed its largest shipping industry casualty to date when Korean-owned Hanjin called in the receivers on 31 August. It followed the withdrawal of backing by the state Korea Development Bank, which stated that its debt stood at $5.5 billion at the end of June.

The financial collapse of the world’s seventh-largest container operator has left the freight industry in turmoil, with reports that at least one vessel had been seized by creditors and that some ports were refusing entry to Hanjin ships.

Fellow Korean operator Hyundai Merchant Marine was reported to be mulling a plan to acquire some Hanjin ships and other assets, though it was unclear whether any part of the operator could be rescued as a going concern. Consultants VesselValue.com said that Hanjin ranks as South Korea’s largest container liner operator, owning 39 vessels with a total capacity of 283,286teu worth $1.4 billion. HMM is second in Korea with eight container vessels, with 135,898teu capacity, worth $624 million.

Specialist shipping solicitor Pysden added that forwarders would need to seek instructions from clients and make contact with the receiver to try and release cargo, warning that delivery charges might have to be paid again. It added: “They should manage client expectations carefully as the situation is one that cannot be rushed or resolved easily.”

The European Shippers’ Council meanwhile called on terminals currently holding Hanjin containers to release them immediately. ESC said it would work with the Global Shippers Alliance to find a swift solution.

Tags: Hanjin