Hanjin Group chairman steps in to help Hanjin Shipping

BTN News
Thursday, 15 September 2016

The chairman of Hanjin Group has now transferred KRW40 billion to Hanjin Shipping to help fund the unloading of cargo stranded on the troubled firm's vessels.


The Hanjin Shipping group had pledged KRW100 billion after the world's seventh-biggest container shipper collapsed.


Around US$14 billion of cargo is tied up globally and some ports, cargo handling firms and road haulage operators have refused to touch its vessels fearing they may not be paid.


Hanjin filed for receivership in a Seoul court on Aug 31 and said last week it might cost KRW173 billion to unload all the affected cargo.


Three bulk carrier vessels chartered to Hanjin already have been sold for an estimated US$39 million.


The fleet of 63 ships Hanjin owns is worth around US$1.76 billion, according to VesselsValue. It charters a further 78 vessels and has admitted it was US$5.5 billion in debt as at the end of June, 2016.


In Sydney, Australia meanwhile, the Hanjin California has been seized following a court order by Glencore Singapore over unpaid fuel bills. Six other Hanjin vessels headed for Australia also risk being seized by creditors.


Some 93 vessels, or two-thirds of Hanjin Shipping's fleet, are currently affected by legal and other moves. In addition to seizures, some have been stopped entering ports or terminals, denied services or are moving slowly hoping for a rescue plan breakthrough.


As well as the huge amount of affected cargo, about 1,000 ships' crew are 'stranded' aboard the huge vessels and the companies that rent containers to Hanjin are monitoring their assets to ensure their interests are protected.


There also is the issue of when cargo will be delivered to end customers and whether some cargo may be delayed so long that it breaches contractual commitments.

The airfreight industry has been watching the saga for uplift opportunities, but it is understood that few openings have presented themselves as yet.

Hanjin Group chairman steps in to help Hanjin Shipping

BTN News
Thursday, 15 September 2016

The chairman of Hanjin Group has now transferred KRW40 billion to Hanjin Shipping to help fund the unloading of cargo stranded on the troubled firm's vessels.


The Hanjin Shipping group had pledged KRW100 billion after the world's seventh-biggest container shipper collapsed.


Around US$14 billion of cargo is tied up globally and some ports, cargo handling firms and road haulage operators have refused to touch its vessels fearing they may not be paid.


Hanjin filed for receivership in a Seoul court on Aug 31 and said last week it might cost KRW173 billion to unload all the affected cargo.


Three bulk carrier vessels chartered to Hanjin already have been sold for an estimated US$39 million.


The fleet of 63 ships Hanjin owns is worth around US$1.76 billion, according to VesselsValue. It charters a further 78 vessels and has admitted it was US$5.5 billion in debt as at the end of June, 2016.


In Sydney, Australia meanwhile, the Hanjin California has been seized following a court order by Glencore Singapore over unpaid fuel bills. Six other Hanjin vessels headed for Australia also risk being seized by creditors.


Some 93 vessels, or two-thirds of Hanjin Shipping's fleet, are currently affected by legal and other moves. In addition to seizures, some have been stopped entering ports or terminals, denied services or are moving slowly hoping for a rescue plan breakthrough.


As well as the huge amount of affected cargo, about 1,000 ships' crew are 'stranded' aboard the huge vessels and the companies that rent containers to Hanjin are monitoring their assets to ensure their interests are protected.


There also is the issue of when cargo will be delivered to end customers and whether some cargo may be delayed so long that it breaches contractual commitments.

The airfreight industry has been watching the saga for uplift opportunities, but it is understood that few openings have presented themselves as yet.