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.
Hanjin Shipping to Pay Handlers to Unload U.S.-Bound Ships
(excerpted from wsj.com, Sept 9, 2016, by Tom Corrigan)
A lawyer for Hanjin Shipping Co. said Friday that a South Korean court has authorized the company to pay to unload some U.S.-bound ships carrying cargo that has been stranded at sea since the shipping giant filed for bankruptcy last week.
During a hearing Friday morning, Hanjin bankruptcy lawyer Ilana Volkov told Judge John Sherwood of the U.S. Bankruptcy Court in Newark, N.J., that the company now has the funding and legal permission necessary to offload four ships bound for U.S. ports.
“We do not want to hold on to this cargo,” she said. “We want the customers to get their goods.”
Ms. Volkov says the company had $10 million in a U.S. bank account to pay to service four container-laden ships bound for the U.S. Court papers show a total of 13 ships either owned or leased by Hanjin whose next port of call is in the U.S.
“We’re making a lot of progress,” Ms. Volkov said. “We have the money to fully service those four ships.”
The four ships are Hanjin Greece, Hanjin Gdynia, Hanjin Jungil and Hanjin Boston.
For containers that have already been unloaded and that have been sitting on the tarmac at U.S. ports, Ms. Volkov said the company had been working successfully with cargo owners to get their goods back in the supply chain and to their final destinations.
More container cargo moving with NVOCCs
Approximately 37.5 percent of imports to the United States were contracted by non-vessel operating common carriers in the first quarter of 2016, according to research firm Datamyne.
BY CHRIS DUPIN |WEDNESDAY, MAY 18, 2016
A larger share of container cargo is routed through non-vessel operating common carriers (NVOCCs).
According to Miami, Fla.-based research firm Datamyne, about 37.5 percent of imports to the U.S. were contracted by NVOCCs in the first quarter of 2016.
The firm said that is “a bump up from 2014’s share of 36.0 percent and a 10 percentage point gain over 10 years.”
The dependence on NVOCCs varies among the top 20 carriers, according to the list generated by Datamyne. In the first quarter of 2016, it ranged from 79 percent for United Arab Shipping Co. to just 4 percent for Seaboard Marine and zero percent for Transfrut Express, which carries fruit for Dole, according to Datamyne’s list of the 20 largest vessel operating common carriers.
Datamyne found even the largest carriers may have more than one-third of their cargo contracted by NVOCCs.
Datamyne believes part of the reason for the change is that shippers are increasingly outsourcing logistics to NVOCCs, rather than performing work in house. It also said that trend toward outsourcing is driving mergers and acquisitions in the 3PL space.
USA ADVISORY Safety Of Life At Sea (SOLAS)
Dear USA Valued Customers,
The International Maritime Organization (IMO) has adopted amendments to the Safety of Life at Sea (SOLAS) Convention.
As of July 1, 2016, all loaded containers are required to have a Verified Gross Mass (VGM) declared by Shippers to the respective ocean Carriers with whom the containers are booked.
What is Verified Gross Mass (VGM)?
The VGM consists of the total gross cargo weight, dunnage and container tare weight and applies to packed containers tendered to the ocean Carrier.
The SOLAS amendment provides two methods for the Shipper to calculate the VGM:
Method 1: Obtain VGM by weighing the packed container and subtracting the road vehicle where applicable (chassis/trailer/cab).
Method 2: Obtain VGM by weighing the individual shipments and adding dunnage and the container tare weight.
For our LCL product BOC International is the Shipper to the ocean Carrier. We are directly responsible for obtaining and transmitting the VGM of the consolidated container in a timely manner to ensure the container is loaded onto the vessel. SOLAS does not specify applicability to LCL cargo, only to the packed container which is made up of the aggregated volumes.
As BOC International builds consolidated containers globally, we use a variety of BOC International operated as well as 3rd party warehouses. Therefore, we will be using a combination of both method #1 and #2 in order to obtain and provide the VGM of the consolidated container to the ocean Carrier.
Pricing for U.S. LCL Export Consolidation will be as follows:
US$5.00 w/m (minimum 1 cbm) VGM Weight Verification fee
US$10.00 flat per Bill of Lading VGM Administration fee
For our FCL product, as BOC International does not control the loading of the container, we rely on our customers to provide us the VGM. This needs to take place prior to the VGM cutoff at the terminal. Minimum requirements are:
- BOC International Booking Number • Container Number • VGM • Unit of measurement • Date • Name of person authorized by the Shipper
We will be providing a portal as part of our global website for the submission of this data to enable our customers’ transmission of the VGM information in a timely manner.
BOC International may arrange to have the FCL container weighed and obtain the VGM on the customer’s behalf, provided the request is made at the time of booking. BOC International will then submit the VGM to the ocean Carrier.
Pricing for U.S. FCL Export VGM services:
US$25.00 VGM Administration Fee per Container if VGM provided by Customer
US$50.00 VGM Administration Fee per Container if VGM arranged by BOC International (excluding weigh ticket, driver waiting time, additional drayage(s), re-delivery, repositioning and any and all other applicable out-of-pocket expenses)
For both LCL and FCL products: At the time of this notification, changes and updates are ongoing globally in regards to VGM related fees by ocean Carriers and/or
terminals. The above pricing is based on our best industry intelligence to date. If changes do occur, the above export-related pricing above may be altered. We reserve the right to modify our position at any time.
There is no single standard implementation process around the world for ensuring the VGM is enforced. The above is an outline of how BOC International Logistics Services intends to address the VGM requirements. We have teams around the world who are working with ocean carriers and their terminals to come up with solutions and pricing that best fit local processes.
BOC International continues ongoing discussions with regulatory authorities and stakeholders around the globe to ensure systems and procedures are in place before the effective date.
We will continue to keep you informed through further updates.
Large MSC container ship blocking the Suez Canal
A 12,500 teu container vessel from Swiss-based MSC, the MSC Fabiola, is currently blocking traffic at the southern end of the Suez Canal. Northbound convoys in the Suez Canal have been suspended following grounding of a 153,514 DWT containership on April 28, according to GAC Egypt.
The vessel ran into trouble due to engine problems and is still grounded at the same position.According to GAC, the ship was the tenth vessel in the Southbound convoy of 20 vessels, while the rest of Southbound convoy of 8 vessels have been detained.
Nevertheless, based on the data from Marine Traffic, Portugal-flagged 153,514 DWT containership MSC Fabiola is aground in the Suez. The 2010-built ship was headed for Salalah, Oman based on its AIS data, which shows the vessel currently being maneuvered by two tugs Mosaheb 4 and Mosaed 4.The boxship is chartered by the Mediterranean Shipping Company. As informed, Suez Canal tugs are trying to assist the ship, but more traffic delays are expected until the grounded vessel is floated.
World Maritime News Staff
