Dive Brief:
- In the wake of Hajin Shipping bankruptcy, the Hanjin Group is rapidly looking for legal action to save its ships from being seized. 61 container ships and 18 bulk carriers are currently at a standstill, the Wall Street Journal reports.
- South Korea's Hanjin Group will offer its stake at the Port of Long Beach and other assets as collateral to raise $90 million to help the beleaguered shipping line.
- Legal action has been taken by U.S. firms against Hanjin to seize vessels over unpaid bills. Hanjin is seeking relief from legal action by filing Chapter 15 petition in a U.S. bankruptcy court in New Jersey.
Dive Insight:
Hanjin will seek legal action in about 10 countries this week to protect its ships from being seized, Korea’s financial regulator said on Monday. The countries include Canada, Germany and the U.K., the Financial Services Commission said in a statement.
Meanwhile, in an effort to get cargo to its U.S. destinations and allow some minor relief from retailers, some members of the California congressional delegation asked the federal government Sunday afternoon to get involved in the Hanjin Shipping insolvency.
However, the Hanjin crisis is unlikely to go away soon, and its spillover effects are being felt worldwide.
Seeking Alpha reports investors looking at containerized shipping as a future investment is taking a second look at the wake of the largest shipping bankruptcy to date. At the same time, news outlets have focused on the proximate causes of the bankruptcy: slowed global freight movement, smaller shipments of goods combined with investments in larger vessels, and large debt loads all played a part in the crisis.
