Although the International Housewares Shippers Association (IHSA) does not have a contract with Hanjin, we wanted to address their current financial situation. As expected, Hanjin did file for court receivership on August 31 after losing support of its banks. The court will decide whether Hanjin will continue to operate or be dissolved. This process normally takes two months but the courts have agreed to expedite this particular case.
This development is going to have major ramifications in the shipping industry. In addition to Hanjin, the CKYHE Alliance (COSCO, Kline, Yang Ming, Hanjin, Evergreen) will be greatly impacted by this development. Should this situation spiral out of control, cargo on any Hanjin vessel that is seized will certainly be delayed and will likely incur extra costs to the shipper.
IHSA does have a contract with Evergreen. While it is unlikely that Evergreen will continue to accept bookings for Hanjin vessels, we are recommending that members avoid loading cargo on any Hanjin vessels. This is the safest route until things become more clear.
Please read the latest IHSA – Legal Counsel article. The article takes a look at what happens when a ship gets arrested.
IHA Members with concerns or questions are encouraged to contact an IHSA representative at IHSA or +1-513-489-4743.
