Stranded vessels from the bankrupt shipping company Hanjin have been too heavily delayed while attempting to berth at port, and it is currently impossible to recover company operations, reported Bloomberg.
The receivership is being handled by a South Korean Court, who has stated that supply chain disruptions caused by stuck cargo are simply adding to the company’s debt.
Park Moo-hyun, Analyst for Hana Financial Investment Company in Seoul, said: “Something needs to be done quickly; investors appear to take this to mean that the court also thinks the chances of Hanjin Shipping’s survival are growing dimmer.”
This news comes alongside reports that the former chair of Hanjin Shipping has been accused of insider trading with the failing company’s shares, having dropped US$3.67 million worth of shares before she left the company in 2014.
Hanjin Shipping has been in financial turmoil for a while and its filing for receivership could have at first been considered a blessing for large carriers such as Maersk, as it relieves the over-supply which is a big problem for the shipping industry.
Experts have warned however, that even with the sudden drop in TEU’s being circulated there is no end for the shipping industry crisis within the next two years