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Virginia Port Update on Handling of Hanjin, CKYHE Cargo

Maritime Activity Reports, Inc.

September 3, 2016

In light of the recent bankruptcy filing by Hanjin Shipping, The Port of Virginia has updated its policies and processes regarding the movement and loading of Hanjin vessels and containers.

The following policy is effective as of Sept. 1, 2016:

• The port will not load any cargo from Cosco Container Lines, "K" Line, Yang Ming Line and Evergreen

Line onto a Hanjin vessel.

• No Hanjin cargo will be loaded onto Cosco Container Lines, "K" Line, Yang Ming Line and Evergreen

Line vessels.

These restrictions were requested by Cosco Container Lines, "K" Line, Yang Ming Line and Evergreen Line, which with Hanjin, compose the CKYHE shipping alliance. After careful consideration, the port agreed today to comply with the request.

Beginning Aug. 31, 2016, the port enacted its own restrictions regarding the movement of Hanjin freight. Those restrictions include:

• Not accepting any Hanjin containers for export at any of the port’s marine or intermodal terminals.

• Only accepting empty Hanjin containers at the Pinners Point Container Yard (PPCY).

• Hanjin containers that are currently in transit by rail to the port will be accepted until Monday, Sept. 5;

any and all Hanjin containers arriving after that deadline will be rejected.

• The port is not ramping or loading any Hanjin containers at the rail operations.

600 World Trade Center I Norfolk, VA 23510 I ph (757) 683 8000 I toll-free (800) 446-8098 I

• Rail service to VIP is available for Hanjin containers, but only if the consignee provides prepayment or

the written guarantee of payment.

• All use of HRCPII chassis for Hanjin business will be considered merchant haulage, billable to the

respective motor carrier under their applicable contract with HRCPII (effective Sept. 1, 2016).

• Any HRCPII chassis out-gated under Hanjin carrier haulage terms prior to Sept. 1, 2016, and not returned by Sept. 7, 2016, will be converted to merchant haulage, billable to the respective motor carrier from

Sept. 8, 2016, forward.

• Hanjin export containers may be picked-up at the terminals by the original shipper only with release/authorization from Hanjin Shipping. In these occurrences, all terminal service charges shall be waived and the shipper will be responsible for all associated chassis charges/fees.

• All vessel-import Hanjin containers, or those Hanjin containers already on terminal by Tuesday, Sept. 6,

2016, and that have the appropriate documentation, shall be available for merchant haulage to exit the marine terminal per normal. Any accompanying chassis charges/fees will be applicable.

• At the start of business on Wednesday, Sept. 7, 2016, the charge to release any/all Hanjin import containers will be $325; all demurrage charges will be waived. Any/all Hanjin containers leaving the terminals under this rule must have a release/authorization from Hanjin. All chassis charges/fees will be applicable.

As this is situation evolves, the port will continue to review its policies and processes for handling Hanjin cargo and all changes will be communicated to all port customers, users and stakeholders as soon as they have been finalized. Port leaders are meeting daily to assess the situation and have committed to providing regular briefs/updates outlining any additions to the port’s policy regarding this matter. Any change in the port’s policy on the handling of Hanjin containers can be seen at:

• Website:

• Facebook:

• Twitter:

Hanjin Shipping, South Korea's biggest shipping firm, announced the filing for receivership and a request to the court to freeze its assets, which the Seoul Central District Court planned to grant.

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