Hanjin: Ports Can Expect Months of Disruption
The collapse of Hanjin Shipping is expected to cause difficulties with port operations and shipping lines for two to three months, the U.S. Department of Agriculture said in a report published on Thursday.
The failure of the world's seventh-largest container carrier is also expected to delay processing of U.S. agricultural products and will likely increase costs of imported agricultural goods in South Korea, the agency said.
Samsung Electronics has asked a U.S. judge to allow it to pay cargo handlers to remove its goods from Hanjin Shipping's vessels stationed near U.S. ports.
Around $14 billion of cargo has been tied up globally as ports, tug boat operators and cargo handling firms refuse to work for Hanjin because they fear they will not be paid due to uncertainty over plans to provide new financing.
Samsung said an order this week by a U.S. bankruptcy judge did not encourage the Hanjin ships to enter U.S. ports as intended, which the company blamed on a misunderstanding of maritime law, the bankruptcy code and Korean law.
The maker of electronic goods including Galaxy smartphones said the judge should issue an order barring the seizure of ships and allow it and other cargo owners to retrieve their goods by paying cargo handlers, who have been demanding payment guarantees.
"There's no earthly reason why these parties should not be permitted to cut their own deals," Samsung said in a Thursday court filing with the U.S. Bankruptcy Court in Newark, New Jersey.
An attorney for Hanjin, Ilana Volkov, did not immediately respond to a request for comment.
The judge, John Sherwood, will hear the request on Friday.
Hanjin's collapse last week came during the peak shipping period ahead of the year-end holiday season, stranding cargo for the likes of HP Inc and Samsung.
As of Thursday afternoon, two Hanjin ships were near the Port of Long Beach, according to the Marine Exchange of Southern California, which tracks cargo ship traffic. One of the ships, the Hanjin Boston, is scheduled to head into the port on Friday afternoon for re-fueling.
A third ship, the Hanjin Greece, was off the shore of Mexico, where it could avoid U.S. anti-pollution regulations that require use of low-sulfur fuel, the tracking group said. Many ships carry only a limited supply of low-sulfur fuel.
Some cargo owners have already paid fees to terminal operators to allow the release of Hanjin containers held up on the docks, according to a Port of Oakland spokesman.
The Seoul Central District Court is presiding over the receivership filed by Hanjin last week. A foreign representative of the shipping line has filed for so-called Chapter 15 bankruptcy with the Newark court.
Chapter 15 is meant to allow a company to seek recognition by U.S. courts of orders issued overseas and to ask U.S. judges to assist in a foreign corporate debt restructuring.