Hanjin Shipping to resume work in Long Beach this week
Sep 08 2016
U.S. bankruptcy Judge John Sherwood approved an application by Hanjin for Chapter 15 bankruptcy which extends the protection which it is already granted in Korea under its receivership filing to the United States as well. Currently, 87 out of Hanjin Shipping's fleet of 145 vessels are being denied entrance to ports or are otherwise facing difficulties with their operations.
Hanjin Shipping is seeking protection from creditors in dozens of countries, hoping to minimise seizures of its assets. "Food and water are running down in those ships floating in worldwide waters".
The South Korean electronics giant is fighting to get 1,469 tons of its products off two Hanjin Shipping vessels, which are now unable to dock in Long Beach, California, because Hanjin filed for bankruptcy on August 31.
SEOUL, Sept 7 South Korea plans to deploy more than 20 container ships from next week as substitutes for Hanjin Shipping vessels, to contain the fallout from the collapse of the shipper, the finance minister said on Wednesday. Second, as members of an alliance with six other ocean carriers, non-Hanjin containers on its vessels are held up.
The bankruptcy filing comes after creditor banks made a decision to end financial support for the top container shipper of South Korea.
In the meantime, South Korean regulators said they were directing Hanjin Shipping vessels to unload cargoes in a few key ports, including in Singapore and Hamburg, Germany.
"The ports will not unload them (the ships) because they have been told they will not get paid", Hahn wrote.
The data reveals, for instance, that Samsung Electronics, with a steady flow of shipments from operations in Asia to its US -based companies, is both the top shipper and consignee using Hanjin Shipping's USA import routes. Last week, creditors led by the Korea Development Bank rejected a Hanjin Group proposal to rescue the shipping firm by spending $447.2 million, far short of Hanjin Shipping's debts of more $5 billion.
Hanjin's woes show the container-shipping industry is in bad health, limping from one exigency to another since the 2008 global financial crisis brought trading to its knees. Currently, harbor workers are refusing to take Hanjin Shipping's unloading works anxious that they won't be able to get pays for their work. Typically, port fees for a ship that can carry 8,000 boxes would be about $35,000 per call. The company's assets were frozen-stranding ships-many of which have been unable to unload or take on cargo.