None of the shipments carried by beleaguered Hanjin Shipping are so far on hold at Philippine ports, according to a Philippine Ports Authority (PPA) source.
The source told PortCalls the agency has, as of September 2, yet to receive communication from South Korea or any of the liner’s creditors to impound shipments. The source said only a few Hanjin boxes are currently sitting at local ports waiting to be exported. He said cargo owners could opt to just transfer their containers to other shipping lines.
Erich Lingad, president of newly appointed Hanjin Shipping Philippine agent, TL2 Shipping Agency, Inc, confirmed that for exports, “containers have been / are being pulled out of the port so shippers can use another shipping line.
“For import, consignees can get their containers as long as they pay stevedore charges. (Port operators) ICTSI (International Container Terminal Services, Inc) and ATI (Asian Terminals Inc) are allowing this.”
South Korea’s number one carrier and the world’s seventh largest shipping company last week was placed under receivership, after it filed for court protection when creditors, led by the state-run Korea Development Bank, rejected a self-restructuring plan worth KRW500 billion (US$446 million). On September 2, Hanjin Shipping said about one-third of its cargo fleet had been unable to operate or was being seized at ports. Some vessels are being impounded while others are barred from docking or discharging at some ports.
It must be noted though that concerns are not only for Hanjin shipments but also for those shipments co-loaded with the liner. Until September 2, Hanjin was part of the CKYHE Alliance (Cosco, “K” Line, Yang Ming, Hanjin Shipping, and Evergreen Line). A shipping industry source noted there will definitely be shipments from the alliance’s other members affected by the freeze in Hanjin shipments.
Return of container deposits
Another concern is the return of container deposits by Hanjin’s agent in the Philippines.
But Lingad said container deposits will be returned “except those under MOF transactions.” MOF was Hanjin’s previous agent.
Way before Hanjin’s troubles, the return of container deposits has been a long-running issue in Philippine shipping in general. Shippers have complained about Philippine agents of many international shipping lines not expeditiously refunding the containers deposits, some holding on to the funds for as long as a year before refunding them.
So far, nothing can be done about this issue because there is no government agency that effectively oversees operations of international shipping lines in the Philippines.
Hanjin has been unprofitable for four of the last five years, posting a net loss of more than KRW473 billion (US$424 million) in the first half of 2016 and total net losses of about KRW1.2 trillion over the past three years.
The court will decide whether to keep Hanjin afloat under a recovery program, including debt rescheduling, or to declare it bankrupt. The carrier’s assets, meanwhile, will remain frozen. The court-appointed new management is required to come up with a new rehabilitation plan by November 25.
Reports further said South Korean financial authorities are considering letting South Korea’s second top carrier Hyundai Merchant Marine Co. take over Hanjin’s good assets. – Roumina Pablo
