The early ramifications of the insolvency of Hanjin Shipping, which entered Korean administration on 31 August, have been startling, but in some ways unsurprising given Hanjin’s position as the world’s seventh largest container line operator.
Against the uncertainty is the consequence that goods are now being seriously delayed in getting to market, a “double whammy” result of ships having to stand off ports for fear of arrest (or ports refusing entry), and port operators detaining boxes as security for Hanjin debts. Accordingly the cargo supply chain has had to consider exposures and remedies opposite other parties in the logistics chain, or via insurance.
Detention of containers by ports
Unpaid port and container dues has led to some port terminals refusing to release Hanjin boxes. The right or otherwise of ports to refuse release of . . .