Hanjin's Financial Crisis: Widespread Fallout
There is no shortage of media coverage concerning Hanjin’s failed attempt at financial restructuring and their subsequent receivership filing. Despite a surplus of information, many Allports customers are finding themselves evaluating what this means for US exports and imports. Allports remains dedicated to facilitating your exports and imports. Our Logistics Teams have been busy working with our carrier network to help rebook cargo once allotted to a Hanjin booking or vessel. If you have concerns about cargo already tendered to Hanjin, please reach out to our teams who can provide you with contacts versed in marine bankruptcy and cargo insurance. The Great Hanjin Financial Crisis of 2016 is an unprecedented event that will go down in history books and economic case studies as a prime example, albeit an unfortunate one, of our truly connected global economy. When 98 container ships and 600,000 TEUs cease to operate every link in the supply chain is impacted. Stevedores and terminals are refusing to move Hanjin containers for fear of not being paid for services. Hanjin is not releasing bills of lading without having received payment in full, in advance. Import cargo cannot be delivered as Hanjin is not releasing containers. Some maritime experts are estimating that cargo won’t begin to move for 6 to 12 weeks. As ships sit at anchor (because they would be arrested at port), our local retailers stocking up for the holiday season, very likely have cargo that is delayed into the distribution channels. This may translate to bare shelves and pricing increases. With import containers held and Hanjin bookings cancelled, exporters are left to scramble for space on alternate carriers where capacity is tightening, equipment is rare and rates are expected to increase. The Federal Maritime Commission (FMC) has released a statement (CLICK HERE) stating that they are aware of the situation but have little jurisdiction as Hanjin's receivership is a foreign legal matter. With that said, should other ocean carriers take unfair advantage of importers and shippers that falls outside of the scope of The Shipping Act of 1984 the FMC should be notified. As we prepare to navigate the uncertainty of the next couple of weeks, we encourage all importers and exporters to reach out to their Allports contact with any questions.