Korean Air delays Hanjin Shipping funding plan
- Author: Zachary Reyes Sep 15, 2016,
Sep 15, 2016, 15:43
Hanjin Shipping, now under receivership in South Korea, has sought court protection in the U.S. as four of its ships have been stranded off the coast of the USA out of fears that they will be seized by creditors. They can get away with it because retailers are starting to scramble to make sure their deliveries hit distribution centers ahead of the peak year-end holiday season, industry sources said.
The reason that up to 85 Hanjin vessels are stranded at sea around the world is obvious. Cho would be ready to present his share by early next week, said Hanjin Group. The company was the seventh-largest shipping line in the world until it declared bankruptcy August 31, leaving an enormous amount of cargo stranded at sea. It will dispatch more than 20 substitute container ships next week to try to offload the cargoes. He believes the actual amount of cargo is higher than that.
The price hike is tied to the bankruptcy of Hanjin Shipping, the large Korean container carrier.
Hanjin's collapse could wreak havoc on port operations and shipping lines over the next two to three months and could impact trade between the US and South Korea, the US Department of Agriculture said in a report published on Thursday.
"Without a doubt, it is a mess of an issue for the businesses themselves to be forced to untangle".
Hanjin Shipping Co. applied Wednesday for court receivership after lenders made a decision to halt all support to South Korea's biggest container shipping line.
The group said that Hanjin's ships, and the cargo they carry, have mostly been seized by its creditors, adding that the ships are having to wait outside seaports before being given further instructions on whether they are permitted to enter.
The support will be offered on condition of securing Hanjin Shipping's Long Beach Terminal as collateral, Korean Air said. Some of those ships have been seized by the company's creditors. Now it's cash, payable up front.
It said that the seven vessels were waiting in position at anchorages in various ports and the crew was "well cared for" and being paid regularly.
One Hanjin ship, the Hanjin Scarlet, is in Canada's Port of Prince Rupert, where it is being unloaded, with cargo owners covering charges, port spokesman Kris Schumacher said. It was not clear whether or not Hanjin Shipping under court receivership has money to spare to employ dockers in order to unload cargoes, the Wall Street Journal explained.
Cargo handler Maher Terminals LLC, which operates a container terminal in the Port of NY and New Jersey, backed the plan to let owners of cargo pay for handling. For example, it would have to charter at least 16 planes at a cost of about US$8.8 million to move 1,469 tons of goods, it said.