Additional information about Hanjin Shipping
In the beginning of August 2016, Hanjin Shipping was ranked as the seventh largest container ship operator worldwide. On August 31, 2016, Hanjin Shipping’s debt hit 5.5 billion U.S. dollars, its assets were frozen, and its goods, which were valued at several billions of U.S. dollars, were held aboard 68 of the shipper’s vessels; one of the ships was put on hold in Australia, although it was supposed to dock at a terminal of the world’s second largest marine terminal operator, Hutchison Port Holdings. The month of August marked the dawn of troubled times for the South Korean ocean shipping line, as the company began seeking protection from creditors in 43 countries. Furthermore, bad news did not stop in September, as several ships were requested to be returned to shipowners.
While the reason is likely to be found in the sector’s notorious overcapacity and weak demand, it remains unclear what the repercussions will be. This notwithstanding, the incident is predicted to roil the entire container shipping industry and beyond. This disruption caused by Hanjin Shipping has not remained only within the ocean shipping industry. South Korea is a key exporter of toys and electronic devices; Samsung Electronics relies on Hanjin for about 40 percent of its export shipments from South Korea. Some of the shipper’s duties may be taken over by Hyundai Merchant Marine, which accounts for about 14.4 percent of containerized cargo shipped between South Korea and North America.