Hanjin Seeks to Steer Stranded Ships to Singapore, Hamburg


  • Hanjin scrambles to prevent ship seizures as more vessels blocked | Reuters

    South Korea’s Hanjin Shipping plans to take legal action in jurisdictions worldwide to prevent its vessels being seized, as more of its ships were blocked from docking at ports in the wake of its collapse.

    As of Monday, 79 Hanjin ships including 61 container ships and 18 bulk carriers have been denied port access, according to South Korea’s maritime ministry. That figure includes one vessel seized in Singapore by a creditor, a company spokeswoman said. Hanjin has 141 ships, of which 128 are operating.

    At least three U.S. firms have launched legal action against Hanjin to seize vessels and other assets over unpaid bills.
    Hanjin vessels are currently carrying cargo worth 16 trillion won ($14.5 billion) belonging to some 8,300 cargo owners, the Korea International Trade Association said, adding that the carrier has unpaid bills of 610 billion won.

    As part of its efforts to gain legal protection for its ships, Hanjin has filed a Chapter 15 petition in a U.S. bankruptcy court in New Jersey. It plans to pursue legal action in roughly 10 countries this week and later expand that to 43 jurisdictions, South Korea’s financial regulator said.

    Many port authorities and service providers are demanding cash to work on Hanjin ships, the Hanjin spokeswoman said.

    Its lead creditor, the state-run Korea Development Bank, met with officials of parent firm Hanjin Group to discuss its commitment to paying fees so stranded ships can enter ports, but did not reach a conclusion, a bank spokesman told Reuters.

    • Hanjin Seeks to Steer Stranded Ships to Singapore, Hamburg - Bloomberg

      South Korea said Hanjin Shipping Co. will try to steer vessels to ports to unload cargo as the government attempts to contain global supply-chain disruptions stemming from the container line’s court receivership filing. The shares jumped after Yonhap News Agency reported the government will offer loans to the company.

      Hanjin’s ships will make calls at ports including Singapore, Hamburg and Busan, South Korea, where its vessels are unlikely to get stranded, Deputy Finance Minister Choi Sang Mok said in Seoul Monday. Regulations at these sites make them less likely places where the ships can get stuck, Choi said.

    • Samsung Says $38 Million of Goods On Board Two Hanjin Vessels - Bloomberg

      Samsung Electronics Co., the world’s biggest smartphone maker, said about $38 million of its goods and parts were on board two vessels operated by the distressed Hanjin Shipping Co., which applied for bankruptcy protection last week.
      Samsung said its visual display business division had $24.4 million of parts and finished goods in 304 containers meant for its factory in Mexico, while its home appliance business division had products such as refrigerators, washing machines, dishwashers and microwave ovens worth $13.5 million in 312 containers.

      If the cargo can’t be unloaded immediately, Samsung will be forced to transport alternative parts by air to help meet contractual obligations, entailing “great costs,” it said. For instance, it would have to charter at least 16 planes at a cost of $8.8 million to transport 1,469 tons of goods, it said.

    • South Korea’s Hanjin Shipping bankruptcy has global impact - World Socialist Web Site

      South Korea’s Hanjin Shipping bankruptcy has global impact
      By Ben McGrath
      9 September 2016

      South Korea’s Hanjin Shipping is facing major restructuring after filing for bankruptcy protection last week. A Seoul court placed the world’s seventh largest cargo transportation line under court receivership on September 1, leading to worldwide disruptions at ports and terminals. The country’s shipping lines and shipbuilders have been struggling in the wake of the 2008 financial crisis and the drop in global trade.

      On Tuesday, Hanjin announced it was able to secure 100 billion won (US$90.6 million) to begin unloading dozens of vessels around the world. Forty billion won will come from Hanjun chairman Cho Yang-ho’s personal wealth while 60 billion won will come from loans, using stakes in terminals such as that at Long Beach, California as collateral.