Source: Xiaolin Zeng, Special Correspondent | Sep 06, 2016 9:39AM EDT | JOC
Hanjin Group and chairman Cho Yang-ho said Tuesday they would collectively spend 100 billion South Korean
won ($90.7 million) to offload containers from Hanjin Shipping vessels that have been stranded worldwide.
An emergency response team from the Busan port authority estimates Hanjin Shipping has 530,000 containers
in transit worldwide and of these, 300,000 are already in the midst of voyages, while 230,000 are already on land.
Hanjin on Wednesday applied for receivership, leading to the arrest of ships and refusal of ports to work Hanjin
ships for fear they will not be paid. Cargo has been stranded thousands of miles from its intended destination
and shippers have had to pay heavily to release cargo they have been able to track down.
Cho will contribute 40 billion South Korean won and Hanjin Group will contribute 60 billion won. At the same
time, the money pledged is a fraction of the 600 billion won Hanjin owes in port dues. Cho stepped down as
chairman and CEO of Hanjin Shipping Monday, but remains chairman of the Hanjin Group and Korean Air Lines.
The Hanjin Group has been hit by logistical chaos caused by the sudden exit of Hanjin from the market and a
group subsidiary, Hanjin Transportation, which is involved in third-party logistics, package deliveries, and
inland transportation, has also been hurt in the aftermath of Hanjin Shipping’s bankruptcy.
Other Hanjin Group subsidiaries are pitching in to help the floundering ocean carrier. Korean Air Lines and
Hanjin Transportation have established emergency teams so that when a stranded container is rescued it can
be quickly loaded onto a plane for transportation to its final destination.
More than half of Hanjin’s fleet as of Tuesday was not where it should be, according to AISLive satellite ship
tracking data cross-checked against global shipping schedules and individual vessel data.
The data show multiple vessels detained at Chinese ports as the Hanjin Green Earth, Monaco, Hamburg, Port
Adelaide, Sooho and Dusseldorf have been berthed at the ports of Yantian, Qingdao, Shekou and Shanghai
The Hanjin California has been arrested at Sydney’s Port Botany and the Hanjin Rome and Montevideo were
arrested last week.
We are continuing to follow this situation closely and will provide updates as available.