Hanjin pledges $90 million to resolve shipping cargo chaos

South Korea’s ruling Saenuri Party and the government will offer Hanjin Shipping 100 billion won (S$122.9 million) of loans, Yonhap reported on Tuesday (Sept 6), without citing anyone.

Near-bankrupt Hanjin Shipping looks set to get an injection of 100 billion won ($90.5 million) from its parent group, although the amount falls far short of covering its entire overdue balance that approaches 600 billion won.

Many of them are full of goods being shipped to Western retailers to fill their shelves at Christmas.

The NRF forecasts that major US retail container ports will handle 1.61 million Twenty-Foot Equivalent Units this month, down 0.6% from the same month past year, and said that “all parties” must work together to ensure that cargo gets onto retail warehouses and store shelves as intended. Its debt stood at 6 trillion won at the end of June and a bankruptcy would be the container shipping industry’s largest.

Hanjin Shipping said that as of late Monday, 73 of its ships were seized or denied access to ports, comprised of 66 container ships and 7 bulk carriers.

According to the Financial Services Commission, Hanjin Shipping owes over W64 billion to 457 contracted companies, but delays in transport and meeting its obligations could send the debt much higher.

The recent bankruptcy of South Korea’s Hanjin Shipping Co. has not only stranded vessels and cargo at sea but also its sailors, putting their basic human rights at risk.

South Korea’s government has said it might provide Hanjin with loans to keep the bankrupt shipping giant afloat.

The goal is to “normalize” operations by Hanjin Shipping and “minimize damages on export companies”, according to a statement from Hanjin Group.

He said the ship has about 10 days worth of meals and 20 days worth of other foodstuffs. There is no word besides what we see on the news, that the government is making efforts for Hanjin Shipping.

Hanjin received court approval on Monday to spend funds essential to operating ships, such as food for crew members, and plans to supply seven vessels that urgently need supplies on Tuesday.

Earlier this month, the government has vowed to urgently deploy Hyundai Shipping vessels to ease the cargo transportation issue. Its vessels now carry cargo worth 16 trillion won ($14.5 billion). The shares have lost 15 percent since news of the collapse emerged last week.