Hanjin Shipping collapse strands cargo worth billions

[rooster59]

Hanjin Shipping collapse strands cargo worth billions

 

 

The uncertainty continues for South Korea’s Hanjin Shipping.

 

Korean Air Lines – its biggest shareholder – has for the second time delayed a decision on a bailout plan for the troubled company. The board is due to meet again on Saturday.

 

The collapse of the world’s seventh-largest container carrier has caused havoc in global trade networks.

 

More than half of its 141 ships have been blocked from docking at ports around the world as ports, tug boat operators and cargo handling firms are refusing to work for Hanjin fearing they will not be paid. Four vessels have also been seized as of Thursday, according to Hanjin Shipping.

 

Cargo worth the equivalent of 12.4 billion euros is stuck as this has come during the peak shipping period ahead of the year-end holiday season.

 

There was a glimmer of hope on Friday when Hanjin Shipping said it has received authority to spend the money needed to dock at US ports and begin unloading four vessels that have been stranded at sea.

 

Ilana Volkov, a lawyer for the company lawyer told a US Bankruptcy Court hearing in Newark, New Jersey: “We have the money to fully service those four ships.” She said $10 million had been released by a South Korean court.

 

Samsung is one of the worst hit, and is asking a US bankruptcy court to let it pay to have tens of millions of euros worth of cargo unloaded in ports there.

 

The court has prevented Hanjin ships being seized if they enter US ports, but Samsung has also asked the judge to order the ships be allowed to leave port once unloaded and for cargo holders to recover their property.

 

 

-- © Copyright Euronews 2016-09-10

 

[ukrules]

Interesting, I have heard that the Koreans are (self proclaimed of course) the best of the best in everything they do.

 

I can't wait to see how this plays out.

[shirtless]

They are a massive firm this will have many ramifications for exporters ,and importers.

[mtls2005]

The South Korean firm operated 90 ships, making it the world’s seventh-largest fleet, accounting for less than 4% of global shipping. 

 

Meh, 4% in an industry with a MASSIVE  oversupply. Blip.

 

Seems the Korean government via KDB wants to consolidate all shipping onto one carrier: Hyundai Merchant Marine, so Hanjin has to go.

 

[baboon]

18 minutes ago, shirtless said:

They are a massive firm this will have many ramifications for exporters ,and importers.

Get ready for the 'Will have no effect on Thailand' over on the news section...

[williamgeorgeallen]

the baltic index is a good measurement of the health of the global economy. it has been very bad over the last few years. this is a very bad sign. i would suggest it is time to stock pile some food and water and look for a way to defend it.

[elgordo38]

10 hours ago, ukrules said:

Interesting, I have heard that the Koreans are (self proclaimed of course) the best of the best in everything they do.

 

I can't wait to see how this plays out.

To bad they could not get better at protecting themselves without American aid. I agree with the Donald on this part. America pays and they procrastinate 

[chilli42]

Shipping is a leading indicator of global economic health.  If goods are not being shipped then trade, economic activity and growth are in the toilet.  The yield on sovereign debt around the world tells the same story.  Europe and China are beginning to export their deflation to the rest of the world.  We are in for a rough time ahead.

[elgordo38]

8 hours ago, mtls2005 said:

The South Korean firm operated 90 ships, making it the world’s seventh-largest fleet, accounting for less than 4% of global shipping. 

 

Meh, 4% in an industry with a MASSIVE  oversupply. Blip.

 

Seems the Korean government via KDB wants to consolidate all shipping onto one carrier: Hyundai Merchant Marine, so Hanjin has to go.

 

Does seem a bit lop sided. The Baltic Dry Index is down but stocks are up go figure.