US Marshals out to seize 5,900 disputed containers from Hanjin

US MARSHALS have been ordered to seize 5,900 containers in possession of Korea`s flag carrier Hanjin Shipping because an ownership dispute was resolved in US courts in favour of first lien-holder, the Sumitomo Mitsui Banking Corporation (SMBC).

But Hanjin has responded in British courts filing counter suits claiming Unitas Ireland and its parent, Unitas Finance, are in breach of stipulations in the lease agreements and are suing them for US$11 million.



In the US, lawyers for the box lessor Unitas Ireland said 100 boxes have already been seized from Hanjin ships, reported London-based TradeWinds.



Seizures of the containers were the result of lawsuits in US courts from Unitas and SMBC alleging that Hanjin failed to make final payments, or a balloon payment, after which the Korean company would have taken possession of the disputed containers.



In a statement issued Thursday, Hanjin issued said that Unitas had entered into contract to lease Hanjin 5,900 units of containers for eight years (from 2001 to 2009). The buying obligation for Hanjin was to purchase them by paying a balloon payment upon the 32nd instalment of the leasing deal.



SMBC financed the production of the containers for Unitas and held the mortgage rights, the statement explained.



But when Hanjin was about to make the final balloon payment upon the 32nd instalment, Unitas argued that it was only part of the lease payment and that they were not obliged to give up ownership, the Korean carrier said.



"Unitas argued that if [Hanjin] wanted to purchase the containers, it needed to pay the balloon payment once more, which is against contract," said Hanjin.



"As Unitas intentionally violated the contract in October 2009 [Hanjin] raised litigation against Unitas in England over the ownership of the containers and compensation of the damages caused by Unitas` actions," said the statement.