Hanjin Shipping, the world’s seventh-largest container shipper, filed for Bankruptcy protection on August 31. On September 6, 2016, the Bankruptcy Court for the District of New Jersey issued a blanket stay of collection or enforcement efforts against Hanjin or its assets in the U.S. Three days later, the Court established a protocol for cargo interests to claim their cargo from Hanjin or third parties such as terminal agents, warehousemen or others. Unfortunately, the protocol did not address all of the issues.
News / Hanjin Bankruptcy
The National Retail Federation and the Hardwood Federation today led a coalition of 120 organizations representing retailers, manufacturers, agribusinesses and other sectors affected by the Hanjin Shipping bankruptcy in sending a letter to Commerce Secretary Penny Pritzker outlining specific concerns and urging her continued leadership in bringing about a resolution.
As previously detailed in our Supply Chain Alert, Hanjin Shipping, the world’s seventh-largest container shipper, filed for bankruptcy protection on August 31. Hanjin’s collapse is by far the largest container shipping bankruptcy in history and the consequences continue to reverberate throughout international supply chains and the transportation sector.
Although Hanjin is not among MIQ’s core carriers, we do have cargo caught up in this situation because of vessel share agreements by our core-carriers and shipper-specific arrangements. Our immediate task, therefore, is to obtain cargo release; mitigate any extra costs and expenses; and, deliver our clients’ cargo.
Creditors of Hanjin Shipping Co. 117930 0.78 % , fearful of having their collateral disappear over the horizon, have asked a U.S. bankruptcy judge to reconsider a ruling preventing them from seizing several of the South Korean carrier’s ships.
A group of creditors who have gone unpaid for services such as towing and fueling say that the judge’s order shouldn’t apply to vessels chartered by Hanjin because they aren’t legally its property. The creditors have liens against Hanjin ships that would ordinarily allow them to foreclose on the vessels.
A portion of the $14 billion in cargo trapped at sea by the bankruptcy of Hanjin Shipping Co Ltd (117930.KS) began moving out of one California port on Monday, and a second ship received orders to head to dock, after the turmoil created by the South Korean company’s collapse. Truckers began moving freight from the Hanjin Greece, one of roughly a dozen of the company’s ships destined for the U.S. West Coast, out of the port of Long Beach on Monday, following a U.S. bankruptcy court’s grant of protection.
Import cargo volume at the nation’s major retail container ports should be at near-peak levels this month even as retailers work to cope with the Hanjin Shipping bankruptcy, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
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.