Hanjin Shipping Financial Crisis

Date: September 1, 2016
Subject: Hanjin Shipping Financial Crisis
Hanjin Shipping, South Korea’s largest container line, is inching closer to insolvency after creditors made a decision not to extend more financial support.

Given the carrier’s historical liquidity challenges, Delmar drastically reduced shipping volume with Hanjin in early 2016, by shifting traffic to other steamship lines.

As a major carrier serving Eastern Canada and the U.S. Midwest via the Port of Prince Rupert, Hanjin enjoyed some distinct advantages from specific Asian origin points, which remained in high demand by shippers.

As preliminary information was made available on the severity of the Hanjin crisis, Delmar immediately suspended all bookings with the carrier. Our offices are currently working diligently with all stakeholders and overseas vendors in an effort to reroute cargo to other carrier services.

Meanwhile CN Rail advised that they will be moving all Hanjin containers that have been discharged (in Vancouver, Prince Rupert and Halifax) and currently in their network. For containers that are in transit, CN has advised that they will not be accepting new Hanjin containers into their system until financial arrangements are made.

Other carriers have just announced that cargo on Hanjin operated vessels will be on COD terms. As of early this morning, mother vessel ‘Hanjin Scarlet’ was still anchored outside the Port of Prince Rupert.

As further developments occur, Delmar will take all required action to ensure that any Hanjin cargo in our system is secured and made available to our customers.

Should you require any additional information please contact your local Delmar representative.

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