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Effects of Hanjin bankruptcy spill into Port of Houston

Sept. 9, 2016 –SOURCE: Chron.com  Houston port officials are working to get imported cargo from Hanjin Shipping Co. to customers here amid widespread concern the South Korean firm’s deep financial troubles will disrupt the global supply chain for months.

Hanjin, unable to pay the handling fees needed to discharge $14 billion worth of cargo at ports worldwide, filed for bankruptcy last week in Seoul and in New Jersey. The Port of Houston Authority has halted all exports from the world’s seventh-largest shipping company and will release imported cargo to its owners for $225 per container, charges the shipping company would typically pay. “It is certainly an unprecedented thing for us to see a company go bankrupt,” said Jeff Davis, chief port operations officer. “We’ve really never gone through this.”
Hundreds of Hanjin containers have been discharged at the port from vessels operated by Cosco Container Lines, which has a freight-sharing agreement with the indebted Korean shipper. Davis said about 460 containers were unloaded last week, and most of them were retrieved by the cargo owners.
“We’re trying to make the terminal available to the (owners) and charge a reasonable amount for our handling costs,” he said. About 400 Hanjin containers arrived on another Cosco ship this week, and Davis said the port is expecting two more loads of similar sizes to arrive later this month.
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