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Previously from JJB
Check the latest JJB newsletters on our Industry News page.
Aug 31, 2016/  Volume 2016, Issue 25
Hanjin Shipping Files for Bankruptcy


Dear Valued Customer:
 
On August 31, Hanjin Shipping filed for bankruptcy protection in Korea just a day after its creditors discontinued financial assistance of more than $896 million to keep the company operating. The Korean bankruptcy court will determine whether Hanjin Shipping should be liquidated or given a chance to restructure.

The American Shipper issued a News Flash stating that nearly three in four shippers have cargo on Hanjin Shipping vessels.

According to news sources, a number of ports in some countries have blocked access to Hanjin ships due to concerns that Hanjin may not be able to pay its port fees. Cargo on any vessel that is denied access to a port or seized will be delayed and will likely incur additional costs.

Hanjin Shipping released a customer letter on August 31 stating that "Even under court receivership, the Company will exercise its utmost efforts to fulfill its duty to protect the interests of customers." We believe this means that Hanjin Shipping will strive to release shipments to their customers within their ability to do so.

Meanwhile, many ports in the USA have canceled pick up appointments and are refusing to take new appointments for Hanjin Shipping import containers until further notice.

Other ports, such as the APM Terminals in Los Angeles has issued a notice on September 1 that "appointments can now be made for pick up of Hanjin imports, and importers are encouraged to do so as soon as possible to avoid additional costs" and went on to say that in order to make an appointment, a charge of $600 based on their FMC tariff (item 900/901/815/805) plus any demurrage or other charges must be paid to APM terminals before making a pick up appointment. However, "no additional Hanjin empty or export containers will be received at Pier 400," it said.

Other ports, such as Berth 58 at the Port of Oakland, will require a wire transfer of all funds payable before they will release any Hanjin containers.

Needless to say, the situation is very fluid and is changing by the hour.

On a separate note, Hanjin Global Logistics released a newsletter on August 31 to clarify that Hanjin Transportation Co., Ltd., DBA: Hanjin Global Logistics (HJT), and its subsidiary Hanjin Intermodal America, Inc., DBA: Hanjin Express (HJI) are separate companies that are unrelated to Hanjin Shipping and are therefore financially fluid and not impacted by Hanjin Shipping's bankruptcy filing.

James J. Boyle & Co. understands that the Hanjin Shipping situation will cause some inconveniences to our customers and we are here to help. For the current status of any of your shipments arriving on a Hanjin Shipping bill of lading, please contact our nearest local office servicing the port of entry of your shipment for the latest details. Please also be guided by the following:

  • Since we are uncertain whether a particular Hanjin Shipping vessel will be permitted to enter into a U.S. port to unlade, we will advance payments due to Hanjin Shipping and/or any marine terminal servicing Hanjin shipments and submit Customs entries for such shipments only after we have first confirmed that the vessel has docked at a berth and is allowed to discharge its containers.
  • In addition, James J. Boyle & Co. will advance funds on behalf of an importer for any collect charges, demurrage, and any other charges payable to Hanjin Shipping and/or any marine terminal servicing Hanjin shipments after we first receive a written guarantee on the importer's letterhead agreeing to reimburse us for all charges due, regardless of whether or not the shipment or container can ultimately be delivered into the importer's custody, should there be any complications beyond our control.
  • James J. Boyle & Co. is not responsible for per diem charges for any empty containers and chassis and/or any additional drayage charges if the marine terminals refuse to accept a return of such equipment after delivery.

 


Thank you for your understanding. If you have any questions, please contact your nearest JJB representative.


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Los Angeles

Kent Sunakoda

mailto:ksunakoda@jjboyle.com

(323)263-8100 ext. 327

Portland

Lisa Whiles

mailto:lwhiles@jjboyle.com

(503)284-0909 ext. 120

Seattle

Terry Pilant 

tpilant@jjboyle.com

(206)447-9580 ext. 104 

San Francisco

Connie Arimoto

carimoto@jjboyle.com

(650)871-6334 ext. 3130

        

The information accompanying this newsletter contains confidential information belonging to the sender which is legally privileged. The information is intended only for the use of customers of James J. Boyle & Co. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the content of this information is strictly prohibited. James J. Boyle & Co. will also not be held accountable for any discrepant information. The service we provide is based on our "Terms and Conditions of Service", which is available upon request.


You are provided this copy subject to the terms and conditions of our services.  All rights reserved.
James J. Boyle & Co., 1200 Corporate Center, Ste 350, Monterey Park, CA 91754