Hanjin Line Receivership

Dear Clients,

The following article has been written by Sohee Kim & Kyunghee Park for Bloomberg and is forwarded for your attention.
“As reported in Bloomberg today Hanjin Shipping Co. will apply for court receivership after lenders decided to halt all support to South Korea’s biggest container shipping line.

The Hanjin board decided unanimously on the move at a meeting in Seoul Wednesday and will file for receivership this afternoon, a spokesman said. The restructuring proposals submitted by Hanjin Shipping weren’t enough to address a cash shortage, main lender Korea Development Bank said Tuesday, dealing a blow to the revival efforts by a firm that’s been trying to reschedule debt under a voluntary creditor-led program since May.

Hanjin is among shipping lines grappling with a slump in global trade since the 2008 financial crisis and the slowest pace of economic growth in China in a quarter century. The industry worldwide has been forced to sell assets, cut jobs and idle some operations to bolster finances as the slowdown coupled with overcapacity eroded freight rates.”

Read the full article HERE.

In other places such as Canada, service providers in rail and road, for example CN Rail, has put a 24 hour “pause period” on all Hanjin containers and is waiting for further information from Hanjin.

In addition, in terminals, Hanjin containers are not being released during the “pause period”. It is not improbable that such actions could occur within Australia, and SILA recommends reviewing sea carriage arrangements with Suppliers.

Shipments which are being arranged by SILA and possibly booked with Hanjin will be redirected to other carriers wherever possible.

Kind Regards

SILA Customer Sevice