Hanjin Fall Is Lehman Moment for Shipping, Seaspan CEO Says

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Seaspan CEO: Hanjin Fallout Is Like Lehman for Shipping

Hanjin Fall Is Lehman Moment for Shipping, Seaspan CEO Says
by  Rishaad Salamat Kyunghee Park mangogemini
September 13, 2016 — 5:22 AM CEST
Updated on September 13, 2016 — 9:22 AM CEST
http://www.bloomberg.com/news/articles/2016-09-13/hanjin-s-fall-is-lehman-moment-for-shipping-seaspan-ceo-says
  "
   * Seaspan vessels getting more cargo, better rates, Wang says
   * Korean shipping line wins protection in Japan, U.K., Singapore
   
   The fall of South Korea's biggest container line Hanjin Shipping Co. is
   similar to the 2008 collapse of Lehman Brothers Holdings Inc. and has
   materially impacted the shipping industry, Seaspan Corp. Chief
   Executive Officer Gerry Wang said.
   
   Seaspan, the Hong Kong-based container-ship leasing company that has
   three vessels chartered to the distressed line, is evaluating all
   options and examining systemic risks resulting from Hanjin's bankruptcy
   filing, Wang said in an interview with Bloomberg Television. In June,
   Wang had rejected Hanjin's requests for charter-rate cuts before the
   shipping line filed for court receivership last month.
   
   "The fallout of Hanjin Shipping is like Lehman Brothers to the
   financial markets," Wang said. "It's a huge, huge nuclear bomb. It
   shakes up the supply chain, the cornerstone of globalization."
   
   To watch the interview with Gerry Wang, click here.
   
   With about 93 ships, including 79 container vessels, stranded at 51
   ports in 26 countries, the gridlock at Hanjin has disrupted global
   supply chains during "peak season" when stores in the U.S. stock up
   before the year's busiest holiday shopping season. The owner and
   Hanjin's parent are in the process of injecting funds to help the
   beleaguered company offload cargo stuck aboard many ships and break the
   impasse.
   
   The impact on Seaspan has been small, Wang said, adding he is seeing a
   "silver lining" as freight rates improve in the short term. The vessels
   he has leased to other shippers are more than 90 percent full ahead of
   the holiday season, he said. Seaspan has an operating fleet of about 90
   vessels.
   
   
   amount in dollars for 40-foot containers
   
   "There's a tremendous flight to safety," he said. "Freight rates have
   shot up like crazy over the short term, the long term I don't know. But
   one thing's for sure: This fallout will help demand and supply."
   
   Hanjin Chairman Cho Yang Ho completed infusing 40 billion won ($36
   million) to help the tottering unit, three days after group affiliate
   Korean Air Lines Co., the biggest shareholder, approved pumping 60
   billion won. A former chairwoman of Hanjin Shipping pledged 10 billion
   won on Monday from her personal wealth as relief to the company. The
   South Korean government estimates Hanjin Shipping needs at least 600
   billion won to cover unpaid costs like fuel and cargo handling.
   
   Stay Orders
   
   Hanjin Shipping in exploring the option of bringing some of the
   stranded ships in nearby countries to Busan port, the Port Authority of
   Busan said late Monday. Shares of the company have slumped 65 percent
   this year, compared with a 1.9 percent gain in the benchmark Kospi
   index.
   
   Following a U.S. bankruptcy court ruling last week protecting Hanjin's
   assets from creditors, the company said Tuesday it got similar orders
   that shield its possessions from seizures in Japan, U.K. and Singapore.
   It is also seeking such decrees in other major nations including
   Germany, Spain and Italy, it said in an e-mailed statement.
   
   "Hanjin Shipping will put all efforts to resolve the supply chain
   disruptions as soon as possible," the company said in the statement.
   
   In Long Beach, California, Hanjin Gdynia is in line to berth Wednesday
   after Hanjin Greece unloaded and cleared the way, and will be followed
   by Hanjin Jungil, the company said separately in a text message.
   
   Hurt in an industry marked by overcapacity and slowdown in global
   trade, Hanjin Shipping filed for bankruptcy protection on Aug. 31, and
   a court in Seoul is hearing the case and will weigh options for a
   reorganization or liquidation.
   
   "At the end of the day, the industry has been money losing," Wang said.
   "For like any industry, for long term, it's just not sustainable."
   
    Before it's here, it's on the Bloomberg Terminal. LEARN MORE "

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https://www.youtube.com/watch?v=kwX-DH8sLAA

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https://www.youtube.com/watch?v=RYR3Op6OrzE

Rescue plan for sinking Hanjin Shipping
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https://www.youtube.com/watch?v=bu3ThgTCHnQ

Cargo Chaos At Sea As Hanjin Files For Bankruptcy | CNBC
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https://www.youtube.com/watch?v=xHBWLv6C4m8

James Baker on Hanjin Shipping's collapse
by GroupLloyds , Published on Sep 12, 2016
https://www.youtube.com/watch?v=CQkQLdrIcbk