Large International Shipping Company Files For Bankruptcy: Impact on Relocation
Posted by: Pat DeDonato, SVP, Supply Chain Management & Real Estate Inventory
Hanjin Shipping, a large international shipping company based in South Korea, filed for bankruptcy in August. Industry analysts estimate 80-90 Hanjin ships are currently at sea, with over 500,000 containers, and over US$14 billion in merchandise.
Hanjin is reluctant to dock its ships in some of the world's ports, fearing they will be seized by creditors. Other ports around the world have turned the Hanjin ships away. Port terminals are reluctant to allow vessels to dock and goods to be offloaded unless they receive advance funds from Hanjin. Despite this, there are some ports which are allowing shipments to dock and offload goods unimpeded. As recently as this weekend, a Hanjin ship was allowed to dock and offload in the U.S. Various financing arrangements are being proposed that would bring this stalemate to an orderly conclusion.
How will this impact you and your assignees?
Overcapacity, due in part to the advent of “mega-ships” and decreased global demand, are impacting the international shipping market overall. It remains to be seen how other large shipping companies will be impacted by the Hanjin bankruptcy, as well as other shipping industry challenges.
Cartus has a very small number of customers with goods on Hanjin ships. We are monitoring this situation daily, and our account teams are keeping any clients and customers impacted by this situation updated on new developments. The potential impact on these shipments could include a delay in the goods arriving at their final destination.