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Hanjin Shipping Files For Receivership – Potential Delays From Frozen Assets

Earlier today Hanjin Shipping Co. filed for court receivership. According to reports from Reuters, the largest South Korean container shipping firm and 7th largest in the world, made the decision to seek court receivership from the Seoul Central District Court on Wednesday. Additionally, the request to the District Court was to also freeze the assets of Hanjin. This decision came after Hanjin discovered that they were losing support from their banks. Hanjin’s debt reportedly stood at approximately $5 billion (USD), and their existing funding was no longer adequate.

Additional unknowns were reported this morning by The Wall Street Journal, which indicated that it is uncertain whether the District Court will decide to have Hanjin liquidated or restructured. What is known at this time is that Hanjin will stop accepting bookings for an interim period. Shipments that are already on the water will continue moving to their ports. However, some delays at destination ports are already being reported; ports such as Shanghai and Xiamen in China, as well as Valencia, Spain, and Savannah, GA, have all blocked access to these containerships “due to concerns that they wouldn’t be able to pay fees”. It also appears one vessel already has been arrested. If a vessel is arrested, and Hanjin does not — or cannot — put up a bond to obtain its release, it is probable some third party will be appointed to arrange for disposition of the goods which will not be subject to a creditor’s lien.

MIQ Logistics is currently conducting a thorough summary of its customers’ shipments that might be on board a Hanjin vessel. While there has not been a press release or customer advisory from Hanjin Shipping directly, our teams here at MIQ Logistics are awaiting official statements from the various shipping lines involved with Hanjin. Hanjin is not a core ocean carrier for MIQ Logistics.

These unforeseen circumstances are beyond the control of MIQ Logistics, and we do not yet know the outcome of the decision by Hanjin and the lingering effects this may have on loaded containers and supply chains worldwide. MIQ Logistics will keep you informed of impacts this might have to your shipments (if any).

For more information, please contact your local MIQ Logistics representative.