Hanjin Shipping Files for Bankruptcy
South Korea’s largest container operator, Hanjin Shipping Co. filed for bankruptcy protection on Wednesday. The filing was one day after the company’s creditors decided to discontinue financial assistance of more than $896 million.
The courts will decide whether Hanjin will be able to survive after restructuring, or if the company will be liquidated. Hanjin is the largest container line to file for bankruptcy protection.
Hanjins bankruptcy filing is already having an impact on operations.
Ports in China, Spain, and some in US have blocked access to Hanjin ships due to concerns about fees.
Effective today PNG will not tender cargo with Hanjin, or place cargo with carriers that share space on Hanjin owned vessels. For cargo already in transit, we are working to obtain additional details and will advise each customer directly on what affect, if any, they will see.
The ocean lines will use this opportunity to try to increase rates through General Rate Increases or Peak Season Surcharges, and we expect space to be very tight, with possible capacity issues.
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