The collapse of Hanjin Shipping is a “huge nuclear bomb” that will have a far-reaching impact on the shipping industry, the supply chain and globalisation, according to Seaspan Corporation chief executive Gerry Wang.
As I wrote yesterday, the South Korean shipping giant has applied to South Korean courts for protection against it’s creditors as it lost support from it’s banks.
In an interview with Bloomberg’s Trending Business, the containership owner’s chief suggested the line’s demise was “like Lehman Bros” had been to the financial markets in 2008.
“You are talking about $120bn worth of goods on ships that are stuck… there is a material impact to the supply chain and people are suffering from the consequences,” said Mr Wang.
Hanjin has finally published details of the status of its 97 owned and chartered container and bulk vessels as they attempt to avoid arrest by creditors around the world. Many of the vessels are now running low on supplies and bunker fuel.
The aftershocks of the Hanjin crash are being felt by thousands of service providers around the world, many of which could face closure as a consequence of unpaid debts.
Moreover, small and medium-sized shippers could also face ruin from goods being caught up in months of legal battles over liens placed on Hanjin containers by creditors.
For the full details read the article at theloadstar.co.uk
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