HMM joins emergency response team to mitigate Hanjin bankruptcy fallout
Time：2016-09-08
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Led by South Korea`s Ministry of Oceans and Fisheries it will include stakeholders from across the shipping and port industries.
Its most important role will be to provide ships for to make up for Hanjin vessels that have been seized by creditors, and replace crews that have been scattered or repatriated.
HMM`s support is intended to help shield South Korean shippers and its logistics sectors from the repercussions of Hanjin Shipping filing for bankruptcy protection in both Korea and the US. HMM even reportedly wants to acquire Hanjin`s key assets.
The Korea Development Bank, the main creditor of HMM and Hanjin Shipping, will also help in these efforts. Other members of the response team, which will help check and process cargoes and inspect damages, include representatives of the Korean Shipowners` Association, Busan Port Authority, YeosuGwangyang Port Authority, and the Federation of Korean Seafarers` Unions.
"In particular, in the short term, it is expected that it would be difficult for Hanjin Shipping to operate normally, with vessel arrests and delays in cargo handling," said a Ministry of Finance official, according to IHS Media.
"We anticipate that in the next two to three months, the handling of imports and exports would be affected."
Online news publication, Business Korea reported that the South Korean government plans to use HMM ships on four shipping routes to the United States and nine routes to Europe, and ask CKYHE Alliance members to rearrange their ships to aid their ailing member.
The news outlet also reported that HMM wants to acquire 37 Hanjin ships, the concession for the Long Beach Container Terminal, the Gwangyang Terminal and the HPC Terminal, and the carrier`s sales and human resources teams.
The finance ministry also plans to consult across the South Korean government to find ways to foster the competitiveness of the country`s shipping industry, and will cooperate with owners of cargo and ships along with a state shipping fund to help local shipping companies expand and strengthen their competitiveness.