Hanjin Shipping bankruptcy causes turmoil

Hanjin Shipping’s bankruptcy has caused turmoil with some ports and container handling facilities refusing to handle its cargo – and OOCL has told customers that it will no longer load its cargo onto Hanjin-operated vessels.

It added that for OOCL cargo on Hanjin Shipping-operated vessels that are under arrest and/or idled outside the port, “we will liaise with Hanjin Shipping and the marine terminal operators to release the cargo as soon as possible”. 

OOCL said it was working closely with customers and partners to help minimise the impact.

Hanjin Shipping filed for receivership this week after its creditors refused to provide extra funding to the shipping line.

The National Retail Federation, the world’s largest retail trade association, has written to the US secretary of commerce, Penny Pritzker and Federal Maritime Commission chairman Mario Cordero, urging them to help prevent disruption.

Jonathan Gold, the group’s vice president for supply chain and customs policy, said: “Retailers’ main concern is that there is millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this. Some of it is sitting in Asia waiting to be loaded on ships, some is already aboard ships out on the ocean and some is sitting on US docks waiting to be picked up. It is understandable that port terminal operators, railroads, trucking companies and others don’t want to do work for Hanjin if they are concerned they won’t get paid. 

He emphasised: “We need all parties to work together to find solutions to move this cargo so it does not have a broader impact on the economy.”

A briefing by Holman Fenwick Willan LLP (HFW) highlighted some of the major disruptions faced, such as the “immediate concern” for shipowners about non-payment of overdue or pending hire for vessels time-chartered to Hanjin.

HFW added: “Owners of containers leased to Hanjin will also be concerned about the recoverability of hire due to them. It is reported that Hanjin has already been negotiating with several container lessors regarding hire payments, indicating the difficulty Hanjin was having in meeting its obligations to lessors.”