10 Vessels of Bankrupt Hanjin Seized at China Seaports

by San Antonio Attorney

Around 10 ships operated by South Korea’s Hanjin Shipping have been seized by port authorities, charterers and other parties at the Chinese seaports on Aug. 31, according to a South Korean trade organization.

Some of the Hanjin vessels were not permitted to leave the ports in China, while other ships, which are at nearby sea, will probably be seized, according to the organization.

Hanjin Shipping sought for bankruptcy protection on Aug. 31 after it lost financial support from banks.

On Sept. 1, a judge ruled that a court in South Korea will give the approval for starting the bankruptcy process at the shipping company.

The decision of the court will enable Hanjin to take on legal action outside South Korea jurisdictions to protect its vessels and other company assets from being taken away, said the judge in Seoul Central District Court.

In an interview with the judge, it was revealed that liquidation of Hanjin is not an option.

In the meantime, Hyundai Merchant Marine Co. Ltd is going to set out at least 13 of its vessels to a couple of exclusive routes for Hanjin Shipping prior to Sept. 7, as stated by a top financial regulator in South Korea.

Hyundai Merchant Marine is going to ask a “reasonable” rate for shipping to alleviate the burden of rising costs of freight for South Korean companies, according to the Financial Services Commission.

At present, Hyundai Merchant Marine is restructuring headed by its creditors but its financial backers may provide new funding, said the regulator.

Hanjin Shipping is one of the largest container transporters.  It carried almost 8% of the trans-Pacific trading quantity for the United States market and the filing of bankruptcy will possibly cause considerable harm to both the US economy and consumers, the Korea International Trade Association said.

Leave a Comment

Previous post:

Next post: