Dive Brief:
- South Korea's second-largest shipping line, Hyundai Merchant Marine, plans to deploy 13 extra vessels to the United States and Europe this month to help ease freight disruptions caused by Hanjin's bankruptcy filing.
- Hyundai may take control of some Hanjin vessels, network and staff, according to South Korea's Financial Services Commission, which also said a Hanjin liquidation is possible, Bloomberg reported.
- Hanjin's bankruptcy filing upended global logistics, prompting higher spot rates, barters to release stranded containers as well as new contract negotiations.
Dive Insight:
A survey conducted by American Shipper reveals over 70% of 159 companies had containers aboard one of Hanjin's 98 vessels. However, Hyundai's rescue mission may still take days to complete and companies are scrambling to execute work-around plans.
Meanwhile, various ships remain stranded off the coast of major ports, and some shipping lines have released strict restrictions for loading Hanjin cargo.
An e-mailed statement by the Port of Virginia revealed Cosco Container Lines, "K" Line, Yang Ming Line and evergreen Line are refusing to transfer any cargo onto a Hanjin vessel, or receive any cargo that was originally on a Hanjin vessel. In addition, the port is only accepting empty Hanjin containers at specific terminals and placed a deadline for receiving Hanjin containers by rail.
Hyundai Merchant Marine should help alleviate the immediate problem of stranded merchandise, but only a court ruling can determine the long-term play of getting workers paid and ensuring goods arrive on shelves.
