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Based on announcements made earlier today by the Korea Development Bank and other creditors regarding Hanjin Shipping, CN made decisions regarding the movements of Hanjin controlled and billed containers in CN terminals.As of 10:00 PM Eastern tonight, [Tuesday August 30] CN will take the following actions to protect the best interest of both the customers and our business.All Hanjin import containers will be released for pickup. This includes Hanjin containers on ground at CN inland terminals as well as containers currently moving on the CN network to CN destination terminals. There will be no storage charges for these boxes. All Hanjin export units currently at CN inland terminals will not be loaded onto trains and can be picked up from the CN origin terminal. There will be no storage charges for these boxes.CN will not accept any additional Hanjin export loads at our inland terminals going forward and at this point until further notice, will not accept any bookings from other steamship lines destined for Hanjin owned vessels.”Again, CIFFA will continue to update members as events unfold.
Hanjin Shipping Co’s banks are halting support for the South Korean company, its lead creditor said, making it likely the nation’s largest shipper is headed for bankruptcy as it is dragged down by a deep global industry downturn.
South Korea’s shipbuilders and shipping firms, which underpinned decades of economic growth, are reeling under debt after racking up losses amid a downturn caused by overcapacity and sluggish trade, forcing state banks to pick winners.
Hanjin Shipping had debt of 5.6 trillion won at the end of 2015. Earlier this month, Hanjin Group submitted a plan to Hanjin Shipping’s creditors pledging to raise up to 500 billion won for the troubled shipper.
But Hanjin Shipping was not expected to be able to pay up to roughly 1.3 trillion won in obligations such as charter fees and terminal use fees through next year, even if it succeeded in renegotiating loss-making charter contracts and rolling over bank debt, KDB had said.