Hanjin Bankruptcy

Hanjin Shipping, South Korea’s largest shipowner, last week filed for bankruptcy protection, a move that has created ripple effects across global supply chains. Hanjin’s late August bankruptcy filing has caused numerous delays for Hanjin carried goods as the company remained reluctant to call on foreign ports for fear that their global assets could face seizure. Over the past week ports have also be reluctant to welcome Hanjin liners citing concerns ports would not be able to recoup their fees. The granting of a temporary Chapter 15 protection in the United States has soothed some fears of further supply chain disruptions for U.S. bound shipments. Chapter 15 protection prohibits vessels and other assets from being seized during proceedings. However, doubts still remain about whether or not vessels will be worked and containers released since there still needs to be payment to terminal operators, tug operators, longshoremen, truckers, etc. for their services.

Since the filing of bankruptcy protection U.S Customs and Border Patrol (CBP) has issued a guidance related to vessel diversions for Hanjin Shipping lines. The guidance can be found here. For more information on the Hankin Bankruptcy, click here.