Hanjin Shipping
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| Hanjin Shipping | |
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Native name
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한진해운 |
| Shipping | |
| Founded | 1977 |
| Headquarters | South Korea |
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Key people
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Cho Yang Ho (Chairman & Co-Chief Executive Officer), Suk Tai Soo (Co-Chief Executive Officer, Director) |
| Products | Shipping, Ocean Freight, |
| Website | hanjin.com |
Hanjin Shipping Co. Ltd is a South Korean integrated logistics and container transport company. Prior to its financial demise, Hanjin Shipping was South Korea's largest container line and one of the world's top ten container carriers in terms of capacity. In August 2016, the company applied for receivership.
Hanjin shipping operates some 60 liner and tramper services around the globe transporting over 100 million tons of cargo annually. Its fleet consists of many container ships, bulk and LNG carriers. Hanjin Shipping has its own subsidiaries dedicated to ocean transportation and terminal operation and it has several branch offices in various countries. Due to its financial collapse, Hanjin has lost control and ownership over large portions of its fleet and the majority of its chartered assets have been confiscated by creditors.
In April 2016, Hanjin applied to its creditors for debt restructuring, in order to avoid formal insolvency proceedings. On August 31, 2016, Hanjin filed for bankruptcy protection at the Seoul Central District Court and requested the court to freeze its assets, after losing support from its banks the previous day. Hanjin vessels are experiencing access issues to ports globally. Ports and other firms are demanding arrears and prepayments before providing services to Hanjin vessels.
On September 2 Hanjin Shipping Co. filed papers in U.S. Bankruptcy court in Newark, New Jersey that would allow its vessels to dock without its ships, cargo or equipment being confiscated by creditors. As of September 9 the Hanjin Greece will be allowed to dock, discharge and load containers at the Port of Long Beach. Hanjin Montevideo and Hanjin Boston are expected to dock next.
The financial struggles of Hanjin Shipping are attributable to an ongoing downturn in the container shipping industry that is the result of numerous interrelated factors such as weak global GDP, overcapacity on container vessels, "bloated" US retail inventories, changing consumer spending patterns, Chinese economic slowdown, and muted growth in demand for container shipping. The downturn has dented profits and crippled the financial health for the majority of the top twenty ocean carriers.
Hanjin Shipping's imminent dissolution would be the largest and most significant bankruptcy in the container transport industry and is causing worldwide disruption in shipping as cargo ships get stuck at ports and canals waiting for cash payments. Hanjin's bankruptcy has created a massive ripple effect. Other business that rely on physical products have found themselves without the expected revenue from inventory that became stuck at sea. Though large companies such as Nike have been affected, the effects are more prominent on smaller companies. 80 of Hanjin's chartered ships have either been returned to their owners or ordered to be returned to their owners.
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Wikipedia