The fallout from the bankruptcy of Hanjin Shipping is likely to be far reaching with hauliers operating out of Felixstowe potentially facing writing off large debts.
The South Korean shipping line, the world’s seventh-largest container shipper, filed for bankruptcy protection on 31 August, immediately raising concerns regarding liabilities for customer cargoes being shipped on Hanjin vessels.
One UK container haulier told Motortransport.co.uk it had seen a letter from the company dated 30 August explaining that creditors were not extending further financial support. “There is a significant amount of deliveries coming off ships into Felixstowe,” the haulier said.
“Some other shipping line will pick up the containers that Hanjin doesn’t deliver any more. There’ll be a short term impact on volumes but it will be picked up by other shipping lines.”
A second container haulier said it didn’t work with Hanjin, but added: “I’m sure some haulage companies will have some big debts with Hanjin, which they may have to write off.
“This in turn may have an impact on containers as nobody will want to pick up Hanjin equipment if they are not getting paid, unless the administrators carry on running the business to find a buyer, which in this market maybe a difficult task - a few of the lines are finding it hard to make a profit at the moment.”
He added: “I suppose the containers that Hanjin were moving across the world will have to be covered by other lines and so we may well see volumes increase through other lines.”
Another operator said: “It’s not affecting us as a business but as an industry it will affect everyone, because we’re all looking for the same amount of work.”
A statement from international commerce lawyers Holman Fenwick Willan said: “Hauliers or rail operators engaged for the onward carriage by land of containers shipped by Hanjin are now at risk of not receiving payment of these debts and will also be considering claims.”
Jonathan Roach - container market analyst at Braemar ACM Shipbroking told Motortransport.co.uk that more consolidation in the shipping business was inevitable in the coming years.
He added that with potentially fewer liner operators in the future "the new bigger and leaner liner operators could have increased negotiation leverage in terms of haulage cost strategies and their relationships with road hauliers".
Freightliner, which is understood to work with Hanjin, declined to comment.
Image: Press Association
