US, Korean officials to discuss Hanjin Shipping fallout

[THE INVESTOR] Officials from the US Department of Commerce will meet with Korean counterparts to discuss measures against Hanjin Shipping’s fallout that has deal a blow to the US retailers, local news reported on Sept. 9.

According to the Ministry of Oceans and Fisheries, the US officials will meet with Vice Minister Yoon Hak-bae and other high-ranking officials in a closed-door meeting to resolve the matter early on Sept. 9.

Hanjin Shipping entered court receivership on Sept. 1, after its creditors halted financial support to the debt-ridden shipper. 

The world’s seventh largest shipper’s bankruptcy filing has put global commerce into trouble. Hanjin Shipping, which handled nearly 8 percent of the trans-Pacific trade volume for the US market, stopped accepting new cargo. Many of its vessels are unable to dock or unload cargo at ports at the moment as operators fear the firm may not be able to make payment.

The Hanjin Shipping collapse could stifle big retailers such as Wal-Mart to secure inventory for the key holidays Thanksgiving and Christmas that are closely approaching.

According to the ministry, Hanjin Shipping currently operates 73 containers ships on the sea. With three of the ships seized by creditors, 70 container ships are marooned at sea as they have been denied access to ports.

By Ahn Sung-mi (sahn@heraldcorp.com)