The effect of Hanjin Shipping Co., Ltd.’s bankruptcy filing on world trade is significant. As the 7th largest shipping container company in the world, the ripples will spread far and wide, and touch just about every maritime and related entity worldwide. The bite has already been felt in California, with Rule C arrests of Hanjin owned/operated vessels by bunker suppliers (such as the m/v Hanjin Montevideo, currently under arrest at the Port of Long Beach) and Rule B attachments and garnishments, seeking “property” or assets of Hanjin.
Just yesterday, in the Bankruptcy court for the District of New Jersey, where Hanjin’s US entity has its principle place of business, Hanjin was granted temporary relief via the Chapter 15 equivalent of the “automatic stay,” with a further hearing set for Friday at 10 a.m. EST. Under the temporary order of Sept 6th 2016, Hanjin vessels may enter US ports, to stock up on food and bunkers and other supplies, but they may not leave. So the question is, how and when will this mega problem be solved? Seems like not for quite a long while.