Han Jin Shipping recently applied for bankruptcy protection in court, causing difficulties in the global supply chain.
Hyundai Merchant Shipping, another surviving Korean shipping company, will send 13 ships to the United States and Europe to take over the mess left by Hanjin Shipping. Modern merchant ships will add four ships to the US route on September 9th, and nine more ships to the European route later this month.
The British International Freight Association (BIFA) stated that; If the contract service signed with Hanjin Shipping is point-to-point, then the shipper may need to pay some additional fees to complete the shipment. The customer needs to decide whether to arrange for another consolidation company to replace Hanjin Shipping or send the container back to the warehouse
Yonhap News Agency quoted news that Busan Port has refused to allow Han Jin's maritime vessels to dock, and container binders have also refused to handle Han Jin's cargo. Busan Port has 10% of its cargo coming from Hanjin Shipping, making it the largest seaport in South Korea.
A ship belonging to Hanjin Shipping was seized by creditors in Singapore, while China, the United States, Canada, and other countries began to stop receiving Hanjin Shipping ships. Virginia Port will not accept import and export goods from Hanjin Shipping, but will accept empty containers from Hanjin Shipping. The Auckland Port will continue to unload ships from Hanjin Shipping and deliver loaded import containers to Hanjin's customers, but will not process export containers from Hanjin to and from the United States unless full cost support is provided in advance.
The bankruptcy of Hanjin Shipping has also affected freight transportation at Los Angeles Port and Long Beach Port. Jonathan Gold, Vice Chairman of the American Retail Federation, said, "There are still millions of dollars worth of products that need to be put on shelves on time
Brian Bourke, Vice President of Marketing at Seko Logistics, pointed out that it is currently the peak season before Christmas, and this huge change has occurred at an inappropriate time. Seko Logistics and other logistics companies have started searching for alternative shippers and routes, even by air, but have found that spot rates have been increased by more than 15%.
According to Deutsche Bank, Greek shipowner Danaos still holds $560 million in debt from Hanjin Shipping, making it the most affected company. There are also 8 10100 TEU ships leased to Hanjin Shipping. Danaos CEO John Coustas said, "We have always been proactive in providing support for Hanjin Shipping, and we are very disappointed with the results
Another victim is Korean Airlines, which is expected to incur a loss of $344 million. Hanjin Group, which belongs to Hanjin Shipping, also owns Korean Airlines, which is the world's third largest air transport company. Korean Airlines provides loans to Hanjin Shipping and holds a 33% stake in Hanjin Shipping.
Dafei Shipping also announced an immediate refusal to load containers from Hanjin Shipping, and the containers that have already been loaded will be delivered to their destination.
Samsung Electronics has 40% of its products transported by sea by Hanjin, while LG Electronics has 20% transported by sea by Hanjin. LG Electronics is looking for new logistics and transportation partners.