Global Fallout from Hanjin Collapse
When Hanjin Shipping, Korea's largest and one of the world’s top ten container carriers, filed filed for court receivership after losing the support of its banks, its assets left frozen as ports from China to Spain denied access to its vessels. The long-term fallout from Hanjin collapse will have far-reaching effects, but the impact is already being felt in ports around the world. Shipping is one of the sectors in which South Korea is a global leader, so what does this recent collapse tell us about world trade?
OOCL Won't Accept Hanjin Cargo
Hong Kong's Orient Overseas Container Line (OOCL) said it has stopped loading cargoes and containers from South Korea's Hanjin Shipping Co Ltd , which has filed for court receivership. OOCL's cargo units will also no longer be loaded on vessels operated by Hanjin Shipping, the world's seventh-largest container shipper, according to a notice posted on its website www.oocl.com and emailed to customers. "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. One vessel…
Hyundai Mulls Bid for Hanjin Assets, Routes
Hyundai Merchant Marine is considering bidding for its bigger local rival Hanjin Shipping Co.'s Asia-U.S. route, reports Yonhap. Hyundai Merchant, currently under a creditor-led debt restructuring scheme, is planning to submit a preliminary bid for Hanjin Shipping's route, seen as the most lucrative, and ships that are up for sale. Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up manpower and logistics systems, five container ships and 10 overseas businesses, for sale last week.
HMM Acquires Hanjin's 11 Ships
South Korea's Hyundai Merchant Marine Co. (HMM) will take over 11 ships returned by bankrupt Hanjin Shipping Co. to the Korea Development Bank (KDB), reports Business Korea. Haeyoung Maritime Services Co., a subsidiary of HMM which provides ship management and maintenance services, has managed one container and three bulk carriers returned by Hanjin Shipping to the KDB at the end of last month. These are Hanjin Shipping’s vessels on bareboat charter hire purchase (BBCHP). The…
Hanjin Shipping Secures $45 mln to Rescue Stranded Cargo
Parent group transfers $36 mln to troubled shipper. It may cost over $150 mln to unload stranded cargo. The chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping on Tuesday to help unload cargo stranded on the troubled shipper's vessels, a spokesman said, but regulators warned securing further funds could take "considerable time". The parent of Hanjin Shipping pledged last week to raise 100 billion won to help rescue cargo in the wake of the collapse of the world's seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho.
Evergreen Responds to Hanjin's Receivership Filing
It has been reported that Hanjin Shipping, a member of CKYHE Alliance, has applied for court receivership today. As a member of CKYHE Alliance, Evergreen Line has prepared for this crisis and has activated a contingency plan. 1. No Evergreen Line cargo will be loaded on the vessels operated by Hanjin Shipping. 2. Hanjin Shipping cargo will not be allowed to load on the vessels operated by Evergreen Line. Evergreen Line, as the Carrier to issue the Bill of Lading for the shipment under Evergreen Line's custody, will not prejudice to cargo owner's rights.
Hanjin files for Receivership, Ports Turn Away Vessels
Hanjin says asks court for its assets to be frozen; Hyundai Merchant looking to buy Hanjin's "good" assets. South Korea's Hanjin Shipping Co Ltd filed for court receivership on Wednesday after losing the support of its banks, setting the stage for its assets to be frozen as ports from China to Spain denied access to its vessels. Banks led by state-run Korea Development Bank (KDB) withdrew backing for the world's seventh-largest container carrier on Tuesday, saying a funding plan by its parent group was inadequate to tackle debt that stood at 5.6 trillion won ($5 billion) at the end of 2015.
CMA CGM Ends Joint Service with Hanjin
French shipping major CMA CGM assures its customers over Hanjin collapse. "Further to the information published on the filing for receivership of Hanjin Shipping, we understand that this news may have raised concerns with regards to the transport of goods that you have entrusted to CMA CGM," says a company statement. Hanjin Shipping, apart from being a member of CKYHE Alliance, is a partner of CMA CGM Group on 5 out of the Group’s 200 shipping lines. - CMA CGM Group no longer loads its containers on Hanjin Shipping vessels.
Hanjin Shipping Opts for Debt Restructuring
South Korea’s Hanjin Shipping Co. Ltd will work with lenders to restructure debt after years of weak demand resulted in losses and cash erosion, reports Bloomberg. The board of Hanjin Shipping decided to file for receivership and give creditors authority to manage the company, bowing to calls from the government and its main creditor Korea Development Bank (KDB) which asked Cho to accept heavy restructuring of the company. "Board directors of Hanjin Shipping decided to give up their management control for debt restructuring," said a KDB spokesman.
Industry Wants Hanjin Shipping to Merge with Hyundai Merchant Marine
The Korea Shipowners’ Association (KSA) has officially suggested Hanjin Shipping merge with Hyundai Merchant Marine (HMM) to prevent court receivership and liquidation, reports Business Korea. This is the first time that the industry recommends the merger of the two companies. As placing Hanjin Shipping into court-led restructuring will co-destruct the nation’s shipping businesses, the company should stabilize the business and merge with HMM later. The KSA and the Federation of Korea Maritime Industries…
No Clues on Hanjin's Financial Health
Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else. According to Korea Herald, the country's No.1 shipping line has come under growing pressure from its creditors to secure more money to tide over a deepening cash shortage. Hanjin Shipping has proposed raising some 400 billion won ($353 million) via stocks sales to its affiliates, but creditors want the shipping firm to jack up the figure to some 700 billion won.
Hanjin Chairman: Firm Lost a 'game of chicken' with Rivals
Hanjin's failure largest ever among container shippers; collapse has disrupted global trade networks. The collapsed Hanjin Shipping Co Ltd could not compete against global rivals that were supported by their governments, the chairman of its parent firm told a South Korean parliamentary hearing on Tuesday. The world's seventh-largest container shipper sought court receivership in late August after its creditors led by a state bank halted further support, stranding $14 billion in cargo and sending waves through global trade networks.
Korean Air Approves Loan for Hanjin Shipping
Korean Air Lines, the biggest shareholder of Hanjin Shipping, has approved a plan to provide a loan of 60 billion won ($54.16 million) to the troubled shipper. The support will be offered on condition of securing Hanjin Shipping's Long Beach Terminal as collateral, Korean Air said. Hanjin Group has pledged to raise a total of 100 billion won ($90 million) in funds to help rescue cargo that is stranded at sea following the failure of Hanjin Shipping, the world's seventh-largest container carrier.
Hanjin Sends SoS
As most of Hanjin Shipping Co's assets are stranded at sea or in ports world-wide, the the South Korean company is seeking to protect assets world-wide. Hanjin Shipping’s government-backed creditors are ready to provide the collapsed carrier with roughly 100 billion won ($90.60 million) of loans if Hanjin’s parent provides collateral, Fortune reports South Korean government officials as saying. Hanjin's collapse has left much of its fleet stranded at sea, unable to dock over fears that vessels be seized by creditors.
Hyundai Merchant Marine to Operate on Hanjin's Former Routes
Hyundai Merchant Marine Co Ltd said on Thursday it will deploy vessels on routes that bankrupt Hanjin Shipping used to use from South Korea to the United States and Europe, it said in a statement on Thursday. Hyundai Merchant Marine said it will start on Sept. 8 deploying four ships capable of carrying 4,000 twenty-foot equivalent units (TEU) each, on the route between Busan, South Korea, and Los Angeles. The company also it will deploy nine ships, capable of carrying up to 6,000 TEU each, to Hanjin Shipping's routes between Busan and select European ports, to be operated as needed.
S.Korea Court to Declare Hanjin Bankrupt on Feb. 17
A South Korean court said on Thursday it decided to end Hanjin Shipping Co Ltd's court receivership process and expects to declare bankruptcy on February 17 after a two-week period for appeals. The Seoul Central District Court said in a statement that it made the decision as the firm's liquidation value would be worth more than its value as a going concern. Hanjin Shipping, which had been the world's seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support. Swiss shipping group MSC said on Wednesday its unit has bought a stake in Hanjin Shipping's U.S. port operator, the latest Hanjin asset to be sold. Reporting by Joyce Lee
53 Hanjin Vessels Denied Port Access
The problems that collapsed South Korea’s Hanjin Shipping could be just the tip of the iceberg. Its fleet is either stuck in ports or unable to dock, with port authorities fretting that the company will not be able to pay its bills. According to Business Korea, the company’s 53 vessels – 48 container ships and 5 bulk carriers – were stranded indefinitely or blocked from ports at home and abroad. One vessel was seized by the ship owner. Hanjin Shipping’s 47 containers ships and three bulk carriers are denied access to ports in Sri Lanka and Vietnam…
Hanjin Shipping plan would see sale of most of its ships
South Korea's Hanjin Shipping Co Ltd, whose collapse has disrupted global trade, is considering a restructuring plan to sell more than half its ships, the Wall Street Journal reported on Friday, citing people familiar with the matter. However, liquidation remained the most likely outcome for Hanjin Shipping, the newspaper cited the sources as saying. Hanjin Shipping, the world's seventh-largest container carrier, filed for receivership late last month in a South Korean court and must submit a rehabilitation plan in December.
Hanjin Wants to Sell to Maersk
The Seoul Central District Court has approved a divestment of Hanjin Shipping's Asia-US network and the bankrupt carrier has encouraged Maersk Line to bid on the assets, according to The Korea Economic Daily. It was reported that the ailing Korean shipping company recently contacted Maersk Line, the world's largest container shipping company, to take part in the bidding for the deal. According to the Court on October 13, Hanjin Shipping is set to undertake a main bidding on November 7 after making a business transfer notification on October 14 and taking letters of intent by the 28th.
Banks Halt Support for Hanjin
A bankruptcy would be biggest ever for a container shipper. Hanjin Shipping Co's banks are halting support for the South Korean company, its lead creditor said, making it likely the nation's largest shipper is headed for bankruptcy as it is dragged down by a deep global industry downturn. South Korea's shipbuilders and shipping firms, which underpinned decades of economic growth, are reeling under debt after racking up losses amid a downturn caused by overcapacity and sluggish trade, forcing state banks to pick winners.
Hanjin Shipping, Hyundai Merchant Merger Talks in Air
A report in WSJ says that Hanjin Shipping Co has applied for a creditor-led debt restructuring to avoid bankruptcy, reviving talk of a possible merger with rival Hyundai Merchant Marine Co. (HMM). It could be merged as a part of the government-led restructuring of ailing industries and companies, according to government sources. Both Hanjin Shipping Co. and Hyundai Merchant Marine Co. (HMM) are in hot water, but they are different from each other in a debt structure. Unlike HMM…
Hanjin-chartered Ships Sold, More on Block
Three bulk carriers sold charter-free at about market rates. Two Hanjin container ships also up for sale. Three ships chartered to Hanjin Shipping Co Ltd have been sold and two more vessels are up for sale, ship brokers said on Wednesday, kicking off an asset sale sparked by the failure of the world's seventh largest container shipper. Around $14 billion of cargo has been tied up globally as ports, tugboat operators and cargo handling firms worried about not being paid refuse to work for Hanjin, which filed for receivership in a Seoul court on Aug 31.
Hanjin Commences Layoffs
Hanjin Shipping Co. has notified 560 shipping crew that their service with the company ends on Dec. 10, reports the Pulse. The rest of 2,000 on the company payroll are expected to get dismissal notice within next month. The troubled shipping giant has started laying off its employees as part of and ahead of measures to find a buyer for its Asia-US assets. Korea Ship Owners’ Association and Korea Maritime Institute estimate as many as 10,000 in related port, ship maintenance, and insurance industry would lose job when Hanjin Shipping goes under.