Hanjin Shipping Saga Comes to a Close

On Friday, a South Korean court formally declared bankruptcy for Hanjin Shipping. Hanjin's container terminals in the United States and its core trans-Pacific route operations have already been auctioned off, and some observers say that there isn't much left to sell. Analysts say that creditors are unlikely to recover much of what they are owed. Hanjin's bondholders, banks and suppliers have filed claims totalling to $26 billion – far in excess of the line’s estimated $1.5 billion liquidation value.

The carrier's demise was the largest container line bankruptcy in history. The process of winding down its operations, delivering its loaded cargo, returning its chartered-in vessels and sorting out its leased containers has created unprecedented supply chain disruption.

In addition, thousands of Hanjin mariners were left aboard without orders, although the Korean government has pledged to help them find new employment, they face an uncertain future.

(MarEx)