45 ships of Hanjin Shipping denied entry or held offshore causing turmoil to global freight
The bankruptcy of the Hanjin shipping line has thrown ports and retailers around the world into confusion, with giant container ships marooned and merchants worrying whether hundreds of tons of goods being carried by the Korean company will reach shelves. Oh Junghee reports. Almost half of Hanjin Shipping’s fleet has stopped operating,. .as the company was put under a courtled restructuring scheme on Thursday. 45 ships are denied entry to ports,. or remain anchored,. in seven countries including China, Japan, India, and the U.S.,. as port workers refuse to offload or take aboard cargo.
In fear of unpaid fees. According to the Korea International Trade Association,. China seized or was to seize 10 Hanjin vessels,. while Singapore already has seized one early this week. The ships were denied passage through the Suez Canal as well. Cargo moving from Asia to the U.S. and Europe,. and vice versa,. are stranded in Asia waiting to be loaded. As such, a shockwave in the global supply chain seems inevitable,. as Hanjin Shipping.
Represented nearly 8 percent of transPacific trade volume for the U.S. The U.S. National Retail Federation, the world’s largest retail trade association, urged the U.S. government to cooperate with the Korean government to prevent further disruptions in the market. The association described Hanjin’s bankruptcy as having quot;a ripple effect throughout the global supply chain,quot; . and expressed concern that quot;there are millions of dollars’ worth of merchandise that needs to be on store shelves that could be impacted by this.quot; Korea’s exports to the U.S. have been affected as well,. as almost 46percent of Samsung.
Electronics’ exports,. 24percent of LG Electronics’,. and 58percent of HP’s exports were handled by Hanjin Shipping. To prevent further disruptions,. Korea’s second largest shipping firm, Hyundai Merchant Maritime Company, has deployed 13 ships heading to Los Angeles and Europe. Other shipping lines are also moving to take over some of Hanjin’s traffic,. but that won’t stop shipping prices from rising,. as vessels are already operating at full capacity due to high seasonal demand. Oh Junghee, Arirang News.