company:hanjin shipping co.

  • Hanjin Revival Tough If Unloading Not Expedited, Court Says - Bloomberg

    The South Korean court overseeing the receivership application of Hanjin Shipping Co. said the stranded vessels of the troubled container line are taking too long to unload cargo, and a delay will make it impossible to revive the company.

    Hanjin needs to quickly end the supply chain disruptions and the longer it takes to return the chartered ships means more claims and debt will pile up, a court spokesman said, declining to be identified, citing policy. The board of Korean Air Lines Co., the largest shareholder of the shipping line, will meet Wednesday night in Seoul to speed up about 60 billion won ($54 million) of funding to the company, according to a person familiar with the plan, who asked not to be identified as the information is private.

    Shares of Hanjin Shipping tumbled to a record low Wednesday amid fading chances of survival and after Yonhap News Agency, citing the court, reported a rehabilitation plan was “realistically impossible.

    #tough_revival or #realistically_impossible ?

  • Hanjin Fall Is Lehman Moment for Shipping, Seaspan CEO Says - Bloomberg

    The fall of South Korea’s biggest container line Hanjin Shipping Co. is similar to the 2008 collapse of Lehman Brothers Holdings Inc. and has materially impacted the shipping industry, Seaspan Corp. Chief Executive Officer Gerry Wang said.
    The South Korean government estimates Hanjin Shipping needs at least 600 billion won [530 million USD] to cover unpaid costs like fuel and cargo handling.
    At the end of the day, the [shipping] industry has been money losing,” Wang said. “For like any industry, for long term, it’s just not sustainable.

  • 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.

  • Hanjin Ships Get Stranded in High Seas, Roiling Supply Chain - Bloomberg

    Hanjin Shipping Co.’s vessels are getting stranded at sea after the South Korean container mover filed for court protection, roiling the supply chain of televisions and consumer goods ahead of the holiday season.
    LG Electronics Inc. is trying to find new carriers for its goods, the world’s second-largest manufacturer of televisions said. Shipments through Hanjin account for between 15 percent and 20 percent of LG’s deliveries to America. Hyundai Merchant Marine Co., the nation’s second-biggest container line, stepped in, saying it plans to add 13 more vessels to ease the squeeze.


    • Marooned Hanjin vessels spark shipping crisis | Daily Mail Online

      Forty-five of our 144 vessels are unable to operate in the normal fashion in some 10 countries,” a Hanjin spokesman told AFP.

      Some of them are being impounded, others being barred from docking or discharging,” he said.

      Hanjin’s vessels, sailors and cargo are stuck in a maritime limbo as ports, wary they will not be paid for their services, refuse to let them dock, as well as refusing to handle or free cargo already landed.

      Also effected are ships not owned by Hanjin but contracted by it or those belonging to its alliance members, along with cargo and containers on board those vessels.

      US retailers, bracing for fall-out from Hanjin’s woes as they stock up for the crucial Christmas holiday sales season, have asked Washington to step in and help resolve a growing crisis, the Wall Street Journal reported Thursday.

      10 Hanjin vessels were either seized or denied access at Chinese terminals in Shanghai and Tianjin over the past 48 hours, according to local media reports, with another vessel seized in Singapore earlier the week.

      An estimated 540,000 containers are expected to face delivery delays, according to the reports.

    • Hanjin bankruptcy causes global shipping chaos, retail fears | Daily Mail Online

      Three Hanjin container ships, ranging from about 700 feet to 1,100 feet (213 meters to 304 meters) long, were either drifting offshore or anchored away from terminals on Thursday. A fourth vessel that was supposed to leave Long Beach on Thursday morning remained anchored inside the breakwater.

      The Seoul-based company said Friday that one ship in Singapore had been seized by the ship’s owner. Hanjin Shipping spokesman Park Min did not confirm any other seizures.

      As of Friday, 27 ships had been refused entry to ports or terminals, she said.

      That left cargo headed to and from Asia in limbo, much to the distress of merchants looking to stock shelves with fall fashions or Christmas toys. “Someone from the garment industry called earlier today asking: ’How long is this going to go on, because I’ve got clothing out there,’” Louttit said.

    • U.S. Firms Take Action Against Hanjin As Vessels Are Denied at Ports

      Roughly half of Hanjin Shipping’s container vessels have been blocked from ports since the South Korean firm’s collapse, putting manufacturers and their customers increasingly on edge about the fate of cargo and spikes in freight costs.

      Woes for world’s seventh-largest container shipper have only deepened since its banks withdrew support and it filed for court receivership this week. One vessel has also been seized by a creditor in Singapore while firms in the U.S. have launched legal action against Hanjin to seize vessels and other assets over unpaid bills.

      The potential for cargo to be stranded, perhaps indefinitely, is unnerving for many – particularly as industry insiders and analysts believe that Hanjin has little chance of being rehabilitated and its assets will eventually be liquidated.
      Hanjin accounts for 7.8% of trans-Pacific trade volume for the U.S. market and has a global client base. Of 8,281 owners of goods to be transported as of late August, 847 were South Korean firms, according to government data.