Hard road ahead for Hanjin

2016 has been a year of struggle for Hanjin Shipping. The South Korean liner operator applied for court protection on 31 August after losing the support of local banks that were dissatisfied with its liquidity plan. With more than USD5 billion of debt, the liner operator's receivership has had widespread ramifications - for its shippers, tonnage providers and container carrier rivals. Keep track of the latest developments with Fairplay's dedicated Hanjin topic page.

News & Analysis

Hanjin Hamburg
18 Apr 2017
Sinokor has bought two 2011-built 8,586 teu ships, Hanjin New York and Hanjin Hamburg, for USD12.5 million each, a discount from the USD14.95 million valuation for each ship.
Choi and her two daughters allegedly sold off their shares in the company just days before Hanjin Shipping announced that it had applied to come under KDB’s control.
30 Dec 2016
Choi and her two daughters allegedly sold off their shares in the company between 6 and 20 April, just days before Hanjin Shipping announced that it had applied to come under KDB’s control.
29 Dec 2016
The head of South Korea’s financial watchdog has said Hanjin Shipping’s descent into receivership was inevitable and sets “a precedent should similar situations arise”.
KMTC has acquired four 4,300 teu ships, including Hanjin Norfolk
15 Dec 2016
Shipbroking sources stated that KMTC has acquired four 4,300 teu ships formerly operated by Hanjin Shipping.
Image of Hanjin vessel.
14 Dec 2016
Embattled Hanjin Shipping now faces the prospect of being delisted from the Korea Exchange in April, provided the Seoul court has not consigned the carrier to the scrapheap before then.

Commentary

Concerns about Hanjin Shipping were flagged up long before the South Korean line filed for bankruptcy. The reason why BCOs were wrong-footed and why it took so long for Hanjin Shipping to collapse lies in its 4,000 creditors, a number that shows just how interwoven the threads of the shipping industry have become.

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