Customer Advisory Hanjin Shipping
Dear Valued Customer,
As most customers are already aware, due to the court receivership filing in Seoul Korea, Hanjin Shipping can no longer provide intermodal service or store door delivery service in North America and all cargo must now be terminated at the marine terminal of discharge.
For cargo that was already processed as intermodal transit, the delivery will be terminated at the final rail ramp. Please urgently contact your sales representative to arrange cargo diversion for all cargo still remaining on board or in the process of discharge.
We sincerely apologize for this inconvenience however this is the fastest way for our customers to access their cargo at this time.
[Vessel Status] (HJS operated vessels)

Port of Kaohsiung Damage Related to Typhoon Meranti

Typhoon Highlights
Super Typhoon Meranti remains a Category 5 in the western Pacific Ocean.
Significant impacts from this dangerous typhoon are likely in Taiwan, the northern Philippines and southeast China.
Sustained winds were 185 mph, with gusts up to 225 mph, as of Tuesday morning, U.S. time.
BOC will continue to monitor, and update, as more information becomes available.

Hanjin Vessel Status
Exactly Where Is the Hanjin Fleet?
September 12, 2016 by The Loadstar, by Gavin van Marle
(excerpted from Gcaptain.com)
Unloading operations have begun on some Hanjin vessels after the line finally began to update shippers and forwarders on where its vessels actually are. A fleet update issued by the carrier this morning shows the vast majority of its vessels still “waiting in open sea” for instructions from headquarters.
So far six vessels are confirmed to have been arrested – the Hanjin Baltimore at Panama, with the Panama Canal “impassable” to the line; Hanjin Vienna in Vancouver; Hanjin California in Sydney; Hanjin Rome, as widely reported, in Singapore; and Hanjin Rotterdam in Yantian; and Hanjin Sooho in Shanghai; while the Hanjin Montevideo has been arrested by its bunker supplier in Long Beach, California.
Another seven vessels are at port under embargo and three more – Sky Pride, Sky Love and Pacita – have been returned to their owners. Ten vessels are waiting off the coast of China and two off Japan; a further 12 are waiting off South Korea, two of which – Hanjin Chongqing and Asian Trader – have now run out of fuel and are waiting for bunker supplies. Another nine vessels are underway to Pusan, where they won’t run the risk of arrest.
The Hanjin Europe is under embargo in Hamburg, with Hanjin Harmony waiting in the North Sea, while five vessels wait in the Mediterranean. Two of the latter were refused entry to the Suez Canal and now face circumventing the Cape of Good Hope on their journey to Asia. There are nine vessels waiting in the waters of South-east Asia, the Indian Ocean and around Australia, and a further three in the Arabian Gulf.
In the US, Hanjin Greece began unloading at a Long Beach terminal, while five vessels wait off the coast, with reports that one, the Hanjin Gdynia, will dock this week. The berthing of the Hanjin Greece followed a US court order on Friday extending Hanjin’s provisional protection from creditors, and some $10m has reportedly been raised by Hanjin to pay terminal handling charges for the two vessels, as well as Hanjin Jungil and Hanjin Boston, also waiting to berth at Long Beach and Los Angeles respectively.
Hanjin Shipping secures $45 million, more may take ‘considerable time’
September 13, 2016 by Reuters
(excerpted from Reuters.com)
The chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping on Tuesday to help unload cargo stranded on the troubled shipper’s vessels, a spokesman said, but regulators warned securing further funds could take “considerable time.”
The parent of Hanjin Shipping pledged last week to raise 100 billion won to help rescue cargo in the wake of the collapse of the world’s seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho.
About $9 million pledged by Choi Eun-young, a former chairwoman of Hanjin Shipping, has also come in, the shipper said.
Around $14 billion of cargo has been tied up globally as ports, tugboat operators and cargo handling firms worried about not being paid refused to work for Hanjin, which filed for receivership in a Seoul court early this month.
Shipping submitted early last week to a South Korean court that it could take an estimated 173 billion won ($154.5 million) to unload all stranded cargo, a Seoul Central District Court judge told Reuters.
Risks in Australia – In Sydney, the Hanjin California, which docked on Sept. 3, remained held in port following a Federal Court order filed by Glencore Singapore Pte over unpaid fuel bills. Most of the containers on the 182-meter-long vessel have been offloaded, but some destined for other ports were still being held, port authorities said.
Six other Hanjin vessels were heading to Australia and risked being seized by creditors, two sources familiar with the situation said.
Unlike in the United States, Britain, Japan and provisionally Singapore, Hanjin has no protection in Australia against creditors for unpaid bills.
“It’s likely someone will put a claim on the assets,” said one of the sources, who declined to be identified due to the sensitivity of the matter.

Hanjin Vessel Status
Hanjin Switzerland – Anchored in the Red Sea, has not yet passed through the Suez Canal, and is being barred from doing so.
Hanjin Baltimore – Arrested by World Fuel Services outside of the Panama Canal, has not been allowed to pass.
Hanjin Ami – Anchored outside of Yantian, has not been allowed into dock.
Hanjin Norfolk – Heading to Pusan, may encounter issues when attempting to pass through Panama Canal.

Hanjin Shipping Unloads Cargo at U.S. Port
At least three more cargo ships were expected to unload freight at Port of Long Beach
SEOUL—A Hanjin Shipping Co. vessel was set to finish unloading freight in California on Monday, clearing the way for more of its ships to dock, as the ailing South Korean company works with ports in the U.S. and around the world to get a frozen supply chain moving again.
The Hanjin Greece docked at Long Beach, Calif., on Saturday and began unloading cargo Sunday after days of being stranded off the coast. A Hanjin Shipping spokeswoman in Seoul said at least three more cargo ships—the Hanjin Gdynia, the Hanjin Jungil and the Hanjin Montevideo—were expected to follow suit at the U.S. port.
The financial woes of one of the world’s largest shipping lines have left as much as $14 billion of cargo stranded at sea, and pressure is mounting on South Korea and the U.S. to break the logjam. Several Hanjin ships have been seized by creditors or turned away from ports, with terminals refusing to unload cargo for fear they won’t get paid.
Court papers show a total of 13 ships either owned or leased by Hanjin are set to make their next port of call in the U.S..
The cargo operator got some respite over the weekend after Korean Air Lines Co., its largest shareholder and Hanjin Group’s flagship company, agreed to lend it 60 billion won ($54 million), using Hanjin Shipping’s Long Beach port-terminal assets as collateral.
The airline’s agreement Saturday is part of Hanjin Group’s earlier pledge to put up 100 billion won in aid to help resolve the cargo crisis. Hanjin Group Chairman Cho Yang-ho has promised to make the remaining 40 billion won available by Tuesday, according to Korean
Air.
One of Hanjin’s lawyers on Friday said in a U.S. federal court that the company has both the funding and the legal permission necessary to unload four ships bound for U.S. ports.
Hanjin also has asked a South Korean court for authorization to use a further $3.5 million to have goods that have already been unloaded and are sitting at U.S. ports delivered to their owners, a process that its lawyer said could be jump-started as soon as Wednesday.
South Korean Minister of Trade, Industry and Energy Joo Hyung-hwan met with local exporters and smaller shippers Sunday and promised to use government funds to help deliver cargo to its final destination on time. Mr. Joo also said the government was working with Hanjin’s smaller South Korean rival, Hyundai Merchant Marine Co., and other companies to deploy extra vessels to deal with stranded cargo.
Hanjin filed for the equivalent of chapter 11 in South Korea last month and days later sought chapter 15 bankruptcy protection in the U.S.
Chapter 15 gives a foreign company the benefits of U.S. bankruptcy law, including protections that prevent creditors from seizing assets. But the U.S. court’s power is limited and much of the aftermath of the bankruptcy will have to be worked out in South Korea.
The Seoul central district court has given Hanjin until Nov. 25 to submit a rehabilitation plan that will determine whether it can continue operating. However, this is seen by analysts as granting the company more time for an orderly liquidation, given that the government has signaled that it sees no future for Hanjin by calling on smaller rival Hyundai Merchant to buy its healthy assets.
The company and Hyundai Merchant handle the bulk of Korea’s exports and have been unprofitable for several years, amassing debts in a global shipping market awash in excess capacity and plummeting prices.
Hanjin ship unloads in U.S. as fresh funds pledged
A Hanjin Shipping Co Ltd (117930.KS) vessel is finishing unloading in California and scheduled to leave port on Monday, shipping industry officials said, as shareholders and executives associated with the South Korean firm pledged funds to help resolve the turmoil created by its collapse.
The Hanjin Greece docked in Long Beach on Saturday after a U.S. bankruptcy court granted it protection and terminal operators agreed to take it.
Truck drivers probably will begin moving containers from the Greece on Monday while the vessel prepares to leave late in the day for the Port of Oakland, said Teamsters spokeswoman Barbara Maynard and shipping traffic controllers.
However, the Greece carries only a fraction of the $14 billion in goods on dozens of ships owned or leased by the world’s seventh-largest container carrier.
The collapse of Hanjin under debts of $5.5 billion has caused havoc in global trade networks and a surge in freight rates. Some vessels have also been seized.
On Monday, Choi Eun-young, a former chairwoman of Hanjin Shipping pledged to provide $9 million in private funds to help resolve the situation “in which economic damage is increasing from the turmoil in shipping due to its unexpected court restructuring”.
Choi, who controlled Hanjin Shipping between 2007 and 2014, will provide the funds “within days”.
Parent company Hanjin Group pledged last week to raise 100 billion won ($90 million) in funds to help rescue stranded cargo.
Korean Air Lines (003490.KS), the biggest shareholder of Hanjin Shipping, on Saturday approved a conditional plan to provide a loan of 60 billion won to the troubled shipper. Hanjin Group chairman Cho Yang-ho will raise the remaining 40 billion won and the goal is to raise it by Tuesday as the funds are needed as soon as possible to unload cargo, a Korean Air spokesman said on Monday.
MORE SHIPS COMING
Charter owner Seaspan Corp (SSW.N) has three ships under charter with Hanjin – the Hanjin Buddha, Hanjin Namu and Hanjin Tabul – which are all due to hit the U.S. West Coast within the next few days. Chief executive Gerry Wang said he was confident the South Korean government would provide sufficient funds to pay port operators and Seaspan by the time those ships arrived to ensure they were unloaded.
“We’re keeping our fingers crossed, but South Korea is an export economy and the government needs to ensure the flow of goods to consumers,” Wang said. “I don’t think they want that supply chain to be interrupted on a permanent basis.”
Creditors have sought an arrest warrant against the Seaspan Efficiency, a ship hauling cargo for Hanjin that was due to arrive in Savannah. Wang said the cargo concerned amount to just around $800,000 and that he was confident the parties involved could come to an agreement.
It is not clear when port operators will bring others to berths in Southern California and elsewhere. The U.S. court on Friday gave three other Hanjin ships protection from seizure.
The three other Hanjin ships protected by the U.S. court order are the Hanjin Boston, which remained off the Port of Long Beach awaiting orders on Sunday, and the Hanjin Gdynia, which was several hundred miles away from Long Beach, and the Hanjin Jungil, 310 nautical miles west of San Francisco with its destination listed as Long Beach, according to Marine Exchanges on the west coast that coordinate shipping traffic.
Another Hanjin ship off Long Beach, the Hanjin Montevideo, is under the supervision of a court-ordered custodian after two fuel companies obtained an arrest warrant for it over unpaid bills. Hanjin and the fuel providers are trying to work out an arrangement to release the vessel.
In Hong Kong, the Hanjin Belawan arrived from Shanghai on Monday loaded with containers and was anchored a short distance from the city’s Kwai Chung Container Terminal.
Terminal operator Hongkong International Terminals, a unit of Hutchison Port Holdings Trust controlled by tycoon Li Ka-shing, has outraged local cargo owners by charging fees of between HK$10,000–HK$15,000 ($1,285-$1,928) per Hanjin container to release them at the port.
The delays have concerned importers like Alex Rasheed, president of Pacific Textile and Sourcing Inc in Los Angeles, which has a shipment of clothing in 16 containers on Hanjin ships off Long Beach.
“We’re already starting to run out of some colors and some sizes,” Rasheed said, noting Hanjin’s collapse comes as U.S. retailers prepare for the all-important holiday shopping season.
In Singapore, cargo owner AP Oil International said it had been sending replacement cargos on urgent orders.
“On the procurement side, we do also face some issues to receiving raw materials shipped on Hanjin vessels, which of course we are adjusting our supply chain and production to meet and replace the cargo due to the uncertainty of the situation now,” Group Chief Executive Ho Chee Hon said.
(Additional reporting by Nick Carey and Keith Wallis; Editing by Peter Henderson and Lincoln Feast)

 

One Hanjin ship begins unloading in Long Beach, while others are still anchored offshore
(excerpted from LATimes.com, Sept 10, 2016)
Full story: http://www.latimes.com/business/la-fi-hanjin-long-beach-20160910-snap-story.html
One of three Hanjin ships idled for days off the Southern California coast was allowed to dock in Long Beach and begin unloading cargo early Saturday, a sign that a crisis sparked by the Korean shipping company’s bankruptcy may be easing.
The Hanjin Greece, which had been at sea since leaving Busan on Aug. 21, docked at Pier T in Long Beach at 6:50 a.m., according to the Marine Exchange of Southern California, a traffic controller for the L.A. and Long Beach port complex. The ship is expected to depart on Monday after unloading.
The Greece was allowed to dock after U.S. and Korean bankruptcy courts allowed Hanjin to spend $10 million to unload that ship and others, according to Reuters.
“There are a lot of people suffering,” said Patrick Kelly, executive officer of Teamsters Local 952, speaking at a news conference in Wilmington on Saturday morning.
He said the situation has been particularly hard for truck drivers, as many of them are classified as independent contractors, not as company employees, meaning they cannot claim unemployment benefits when work dries up.
U.S. workers unload first of Hanjin ships stalled by bankruptcy
(excerpted from Reuters.com, Sept 10)
Full story: http://www.reuters.com/article/us-hanjinshipping-debt-usa-ports-idUSKCN11G0X5
Dock workers began unloading furniture, clothing and other cargo on Saturday from a container ship owned by bankrupt Hanjin Shipping Co Ltd (117930.KS), breaking a logjam that has stranded goods on a dozen vessels bound for the U.S. West Coast.
The Hanjin Greece docked at the Port of Long Beach in California early Saturday morning and workers were hauling off containers of products destined for U.S. retailers, labor union officials said.
But ending the Hanjin shipping crisis could be a protracted affair. Port operators, cargo owners, longshoremen, shippers and others all must reach financial agreements with Hanjin before each ship can be docked, officials said.
Two other ships owned by the South Korean shipper were anchored close to the Long Beach port but as of mid-day Saturday did not have orders to dock, according to the Marine Exchange of Southern California, a group that tracks cargo ship traffic. Union officials said nine others were floating in the Pacific.
On Friday, courts in South Korea and the United States cleared the way for Hanjin to spend $10 million to unload cargo from four ships headed to the U.S. West Coast. And on Saturday, shareholder Korean Air
approved a plan to provide 60 billion won ($54.16 million) to the troubled shipper.
While the unloading of the Hanjin Greece was underway, truck drivers had not yet been called in to transport the goods from the port for distribution to retailers, many of which are awaiting products for the busy holiday shopping season.
“At this moment, the drivers are still idle,” Patrick Kelly, secretary-treasurer for Teamsters Local 952, said at a news conference on Saturday morning.
Shippers take legal action to reclaim cargo ‘held hostage’ by Hanjin
(excerpted from theloadstar.co.uk, Sept 9)
http://theloadstar.co.uk/hanjin-customers-take-legal-action-reclaim-cargo-held-hostage/
Some of Hanjin’s largest customers in the US have filed court requests to allow them to reclaim their cargo, amid accusations that the bankrupt Korean shipping line has resorted to holding cargo hostage as a way of “extorting” cash.
Samsung, Korea’s largest exporter of electronic equipment, said in its filing to the US Bankruptcy Court in New Jersey that the interim provisional relief order granted to Hanjin last week needed to be revised to allow the shipping line’s vessels to depart ports once unloading is complete.
Samsung hit out at the court’s provisional relief order that bars creditors from arresting a Hanjin vessel after it docked, but also prevents the vessels leaving the port. It said: “The requirement that ships not leave is effectively an arrest order, leaving both Hanjin and ports unsure whether ships will ever leave. Not surprisingly, no ships have docked and no cargo has been unloaded since the order.”
Samsung has requested the court revise the order to allow firms to pay third parties – such as terminal operators or 3PLs – to handle Hanjin containers with cargo still inside so their goods can be retrieved.
“This relief makes eminent sense, as it does not prejudice the debtor in any way and ensures that cargo holders – who are otherwise hostage to these proceedings – can obtain possession of their products in timely manner,” its filing said.
Samsung is clearly becoming increasingly convinced that Hanjin has little chance of exiting bankruptcy and fears its cargo could be stranded for a long time. “The debtor [Hanjin] has not yet demonstrated (or revealed to creditors) any ability to obtain financing to commence even rudimentary operations so that ships can berth and cargo be delivered.
“This lack of progress continues to result in significant damage to cargo owners, including Samsung. Given these circumstances, it is time for the court to impose an appropriate process to allow individual cargo owners to obtain possession of their property,” it said.
Meanwhile, Californian furniture supplier Ashley Furniture has also begun legal proceedings, accusing Hanjin of “extortion” by “holding its cargo hostage” to raise cash from Ashley, which has some 850 boxes in Hanjin’s possession. “Hanjin’s actions immediately prior to, and following, the 6 September hearing have made it abundantly clear that Hanjin is seeking to abuse the protection of the bankruptcy code and hold Ashley’s property hostage; and is making extortionate demands before agreeing to transfer possession of cargo to beneficial cargo owners,” it said.
It added that Hanjin had previously provided port-to-door services at an all-in rate that included terminal handling charges and inland haulage costs, and would collect the empty containers once they were unstuffed at Ashley’s distribution centres.
Ashley said since it was placed into Chapter 15, Hanjin had continued to charge full port-to-door rates but only delivered cargo to the nearest terminal. The line was claiming that the return of empty containers was now Ashley’s responsibility and that the shipper needed to settle “unpaid port and haulage charges”.
It claimed: “Thus, Ashley is being forced to pay twice for the same service, once to Hanjin and once to the port operator or land transporter.
“These unilaterally revised contract terms will force Ashley to incur substantial additional costs to retrieve its products from their current locations, as well as the costs of returning the debtor’s containers and chassis to the port, terminal or other location.”

Stranded Hanjin ships to unload in Long Beach this week, South Korea says
(excerpted from LATimes.com, Sept 7, 2016)
South Korea’s top economic policymaker said Wednesday that he expected Hanjin Shipping vessels marooned off Long Beach will be able to offload cargo this week.
Finance Minister Yoo Il-ho said at a government meeting that he expects the cargo crisis caused by Hanjin’s slide toward bankruptcy will begin to ease this week, according to a ministry statement.
South Korea’s biggest ocean shipping line says it is seeking protection from its creditors in dozens of countries. A U.S. federal judge has temporarily granted Hanjin’s request for protection from its creditors and scheduled a hearing for Friday. South Korea’s government expects a ruling in Hanjin’s favor, said Kim Hyun-jung, an official at the foreign affairs ministry.
Hanjin’s creditors rejected a rescue plan for the shipping company and refused to provide more funds. The move sent retailers and other companies worldwide scrambling to get at cargo on Hanjin vessels that have been stranded outside ports. Although Hanjin Shipping has more than $5.5 billion in debt, it also needs to pay mounting fees to resolve the cargo crisis that sent shock waves through the global economy ahead of the fall shopping season. Hanjin Group, the parent of the cash-strapped ship liner, has promised $90 million to help relieve the cargo crisis by covering some of those costs.

Maersk Line announces new Transpacific service
In response to the changing market situation on the Transpacific trade, Maersk Line is introducing a new service between Asia and the United States West Coast. The first sailing is scheduled for September 15.
“We are responding to increased demand in the Transpacific. With supply chains disrupted, many customers are approaching us for transport solutions for their cargo. The TP1 service is a stable, long term solution to meet our customers’ needs.” says Klaus Rud Sejling, Head of Maersk Line’s East-West Network.
The TP1 service will be calling Yantian, Shanghai, Busan and Los Angeles/Long Beach. It will have six (6) vessels with a capacity of 4000 TEU per week deployed. The TP1 service will be part of the 2M network.

MSC ANNOUNCES ‘MAPLE’ SERVICE ON TRANSPACIFIC TRADE
MSC has introduced a new service on the Transpacific Trade starting September 15, 2016. The move is designed to assist our customers, following the announcement by Hanjin that it was entering into receivership.

MSC’s additional sailing will be called MAPLE and will call at Busan, Shanghai, Yantian, Prince Rupert, Busan. The service will be made up of six vessels of 5000 TEU capacity.

In order to cover the anticipated high initial demand, the first two sailings will call Yantian, Shanghai, Busan, Long Beach.
We will release more details as they become available.

US Exports – Zika Update –
Only Florida exports require disinfection certification
(excerpted from www.fas.usda.gov)
On September 2, China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) stated that it has decided to regionalize its Zika requirements for shipments of cargo from the United States based on a risk-assessment performed by AQSIQ, using data supplied by U.S. Centers for Disease Control and Prevention (CDC).
AQSIQ experts determined that due to the low risk of Zika transmission through shipments of cargo, vessels originating from the United States, other than the state of Florida, do not require disinsection certification. However, if during the courseo f routine sampling and inspection, local CIQ officials discover any adult mosquitoes, eggs, larva or infected cases, the vessel and its contents will be subject to the full Zika requirements described below. Also, if a vessel loads or unloads in Florida or a Zikainfected country, it is subject to the full requirements.
AQSIQ will continue to monitor the situation and may amend its decision to regionalize based on the Zika situation in the United States.