Explained: What is the Hanjin Crisis and how to avoid it hurting you.

hanjin crisis

Moon – Kyoon Oh, the Chief Executive of Container Liner Sales and Marketing for Hanjin Shipping, posted a press release today in relation to the current Hanjin Shipping Line Crisis.

In brief, the Hanjin board has decided unanimously at a meeting in Seoul on Wednesday to file for receivership, 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.

The Wall Street Journal are reporting that the repercussions of Hanjin’s filing in Seoul were nearly instantaneous. Three of its ships that were scheduled to berth at the ports of Los Angeles and Long Beach, Calif., drifted off the coast Wednesday, their contents—bound for retail shelves, factories and warehouses—marooned indefinitely. Uncertainty about Hanjin’s future raised concerns that its ships could be subject to seizure by creditors, clogging the ports.

Reports are that 2 x vessels have been arrested in Shanghai (Hanjin Sooho) & Singapore (Hanjin Rome).

Indications based on available data and expert opinion, it is now possible that ships may not stick to their original schedules – in fact, one vessel into Australia, the Hanjin California, has already gone off schedule.

According to Automatic Identification System tracking data, the Hanjin California is approximately 14 nautical miles (26km) off the coast of Sydney. It is not underway, not moored and not moving. However, this vessel was due to call at Port Botany early this morning.

Hanjin issues have already cause big impacts in the market. Containers are being held at some global terminals as Hanjin has stopped operating.

We have actively arranged for any current bookings or future bookings to be switched to use other carriers.

It is important to note that space in the market has suddenly become very tight. The industry are asking other carriers to help to solve the space problem.

For the upcoming future, we believe others carriers will increase their rates offers, with indications of least on USD550 to USD600 per container, due to Hanjin fall-out.

Space will become tight on coming peak season before Mid-Autumn and China National holiday period approaches, and we suggest all customers provide us with their earliest advance booking in order we can have best arrangement in place wherever possible.

The situation still remains unclear as to what effect that this will have with Australian importers who have cargo under control of Hanjin’s network.

S.A.L. Global Logistics remain in constant contact with industry bodies and advocates and are monitoring the situation intently.

We are currently working with all customers who are immediately affected by this situation.
However, should you have any questions, please feel free to contact either of our Directors – Roger Hageman (0418 377 380) or Brad O’Brien (0438 047 226)