Hanjin Group to spend $90.7M to rescue stranded containers
The money the Hanjin Group and its chair pledged is a fraction of the 600 billion South Korean won ($541 million) Hanjin Shipping owes in port dues.
Hanjin Group and chairman Cho Yang-ho said Tuesday they would collectively spend 100 billion South Korean won ($90.7 million) to offload containers from Hanjin Shipping vessels that have been stranded worldwide.
An emergency response team from the Busan port authority estimates Hanjin Shipping has 530,000 containers in transit worldwide and of these, 300,000 are already in the midst of voyages, while 230,000 are already on land.
Hanjin on Wednesday applied for receivership, leading to the arrest of ships and refusal of ports to work Hanjin ships for fear they will not be paid. Cargo has been stranded thousands of miles from its intended destination and shippers have had to pay heavily to release cargo they have been able to track down.
Cho will contribute 40 billion South Korean won and Hanjin Group will contribute 60 billion won. At the same time, the money pledged is a fraction of the 600 billion won Hanjin owes in port dues. Cho stepped down as chairman and CEO of Hanjin Shipping Monday, but remains chairman of the Hanjin Group and Korean Air Lines.
The Hanjin Group has been hit by logistical chaos caused by the sudden exit of Hanjin from the market and a group subsidiary, Hanjin Transportation, which is involved in third-party logistics, package deliveries, and inland transportation, has also been hurt in the aftermath of Hanjin Shipping’s bankruptcy.
Other Hanjin Group subsidiaries are pitching in to help the floundering ocean carrier. Korean Air Lines and Hanjin Transportation have established emergency teams so that when a stranded container is rescued it can be quickly loaded onto a plane for transportation to its final destination.
More than half of Hanjin’s fleet as of Tuesday was not where it should be, according to AISLive satellite ship tracking data cross-checked against global shipping schedules and individual vessel data.
The data show multiple vessels detained at Chinese ports as the Hanjin Green Earth, Monaco, Hamburg, Port Adelaide, Sooho and Dusseldorf have been berthed at the ports of Yantian, Qingdao, Shekou and Shanghai since Wednesday.
The Hanjin California has been arrested at Sydney’s Port Botany and the Hanjin Rome and Montevideo were arrested last week.
Contact Xiaolin Zeng at email@example.com.
A version of this story originally appeared on IHS Fairplay, a sister product of JOC.com within IHS.