Hanjin Shipping pandemoneum shocks global trade market


Hanjin Shipping, once Korea’s biggest shipping
company, filed for court receivership on Wednesday afternoon and the repercussions are already
being felt around the world. Hanjin’s imminent collapse is also affecting
world trade. Hwang Hojun reports. Less than 24 hours since the trade giant of
Korea filed for bankruptcy protection… and the news has shocked the global trade market. Ports around the world, including those in
China, Spain, and the U.S. have denied access to Hanjin ships over fears that Hanjin’s creditors
could seize the cargo vessels before they dock,… not to mention the ships potentially
not being able to pay their fees. In fact, a smaller-sized Hanjin vessel, the
Hanjin Rome, was seized by a creditor in Singapore late on Monday. Experts say more docks around the world will
follow suit. The Wall Street Journal reported that U.S.
exporters are jostling to rebook containers with other carriers to reload their cargos,
ahead of the retail boom that accompanies Thanksgiving, Hannuka and Christmas. Hanjin Shipping has halted its operations,
and with global market share of 2-point-9 percent, the drop in tonnage will likely lead
to sky-rocketing costs. A Korean court will determine as early this
week whether Hanjin should be liquidated or given a chance to restructure and possibly
survive. Hwang Hojun, Arirang News.

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