Seaspan refuses to cut costs for Hanjin

[THE INVESTOR] The world’s largest containership owner Seaspan Corp.’s CEO Gerry Wang indicated he would not be accepting charter rate cuts requested by South Korean shipping line Hanjin Shipping.

Wang told London-based journal Lloyd’s List that he would “withdraw the tonnage than agree to any concessions.”

These comments run counter to what Hanjin Group said regarding a meeting between its chairman Cho Yang-ho and Wang on June 14.

Hanjin spokespeople had hinted the discussions went well, and that Wang had reacted positively to Cho’s request to slash the charter rates.

The shipper currently runs a series of 10,000 teu vessels it has taken on lease from Seaspan.

Hanjin Shipping -- the world’s seventh-largest shipping line -- currently pays up to 1 trillion won ($849 million) annually for chartering 91 out of the 151 vessels it runs.

Cutting charter fees is a crucial part of the restructuring process Hanjin is undergoing. In early May, creditors of the firm approved a creditor-led restructuring for the shipper, granting a three-month suspension on all payments of principal and interest. Hanjin cannot avoid court receivership if it fails to cut costs from container owners by the end of July.

By Kim Ji-hyun (jemmie@heraldcorp.com)