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Hanjin’s $14B Worth of Cargo “Hostage” at Sea
Since Hanjin, the seventh-largest shipping container line, filed for bankruptcy last month, the South Korean company estimates that $14 billion worth of cargo is sailing the oceans’ waves and facing tumultuous logistics tides ahead that are thwarting the ships’ unloading process.
As of this week, Hanjin had 97 container ships, with 37 that haven’t unloaded and intend to return to Korea.
A Korean judge has authorized $10 million to unload cargo from three ships, but there is still one, Hanjin Jungil, which is sailing off the coast of California. Additionally, there are 10 other U.S.-bound ships that haven’t been able to dock and unload.
Cargo owners such as consumer products maker Dorel Industries Inc (DIIb.TO) and the U.S. unit of musical instrument maker Yamaha Corp (7951.T) complained they were the hostages.
Alan Brady, a lawyer from Yamaha Corp of America, said, “This could destroy American businesses.”
For comments, questions or concerns, please contact Daniella Soloway
