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Crisis deepens after collapse of Hanjin Shipping

Wednesday, September 07, 2016 - 01:26

South Korea plans to deploy more than 20 container ships from next week as substitutes for Hanjin Shipping vessels, to contain the fallout from the collapse of the shipper. Hayley Platt reports

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It's been another tough week for Hanjin Shipping as it struggles to contain the fallout from its collapse. On Monday its shares slumped by the maximum 30 percent as trading opened before recovering slightly. Now the court handling the collapse has warned Hanjin needs financial support this week to keep operations afloat. South Korea's government is trying to help as the container carrier and its clients try to move an estimated $14 billion worth of cargo off ships. (SOUNDBITE) (Korean) SOUTH KOREAN FINANCE MINISTER YOO IL-HO SAYING: "We deployed one vessel as a substitute on September 2 and we're planning to deploy at least 20 more on routes to the United States, Europe and Southeast Asia after this week." The world's seventh biggest container shipper filed for court receivership in Seoul last Wednesday after banks withdraw support. Hanjin has since sought help from courts in the U.S. to try and prevent its vessels being seized by creditors. Appeals have also been made to 18 countries to safeguard Hanjin cargoes. But more than half of the shipper's vessels have already been prevented from docking - as ports and lashing firms fear they won't be paid. Some vessels have also been seized and freight rates have surged. It's all causing havoc in trade networks at a time when the global economy least needs it.

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Crisis deepens after collapse of Hanjin Shipping

Wednesday, September 07, 2016 - 01:26