Report: Hanjin Shipping Has Enough Cash to Cover Offloading Costs

Image Courtesy: Hanjin Shipping

Cash held by Hanjin Shipping, coupled with commitments from the company’s leading shareholder, the leading creditor, and the parent group’s CEO, should be enough to cover the costs of unloading cargo from the company’s container ships stranded offshore, Reuters reported a South Korean government official as saying.

The vessels have been stranded ever since the South Korean biggest container carrier filed for bankruptcy protection in late August.

Korea Development Bank, the company’s largest creditor, will provide KRW 50 billion (USD 45.2 million) in cash to help Hanjin offload cargo from the stranded ships. Korean Air Lines Co., Hanjin’s largest shareholder, decided to provide KRW 60 billion to the company, and Hanjin Group’s chairman Cho Yang-ho reportedly offered 40 billion won in personal assets to help the carrier complete the offloading.

Following the announcement of the start of the bankruptcy proceedings, 97 of Hanjin’s container ships, carrying cargo worth around USD 14 billion, were left stranded across the globe and unable to load or offload containers in fear of either the vessels or the cargo being seized by creditors or port operators.

Out of the 97 container ships stranded, 35 have unloaded their cargo as of September 22. The majority of the remaining 62 ships is expected to complete the unloading by the end of October.

The courts in Germany, the UK, Japan, and reportedly Singapore have allowed Hanjin Shipping to unload vessels at the ports in these countries.

The government of South Korea plans to unveil a set of new measures in October which are expected to provide other carriers with measures to avoid the Hanjin scenario.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2018 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 1 2 3 4

Shipping 360

This course is ideal for those who have recently joined the maritime sector and those who need to have a better understanding…

read more >

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Shippax Ferry Conference 2018

The two-day onboard ferry conference was first organized in 2003 and grows ever more popular with some 400 delegates from over 40 ferry…

read more >

8th Dredging & Land Reclamation World Summit 2018

The 8th Dredging and Land Reclamation Summit 2018 will gather the decision makers from Authorities and Operators responsible for ports…

read more >