Hanjin Shipping’s core assets are being absorbed by Hyundai Merchant Marine (HMM), with the aim of creating a merger between the carriers, reported Business Korea.
The estimate expenditure by HMM for Hanjin assets will be between approximately US$260 million and $440 million.
Hanjin Shipping had surrendered to court receivership on August 31, 2016, and once receivership is enacted, all Hanjin vessels will be seized and cargo compulsorily removed; this means the cargo will have to be retrieved via other vessels, which is difficult in peak season.
There already have been three Hanjin ships stranded off the coast of the Port of Los Angeles and Long Beach and one detained without action at the Port of Prince Rupert in British Columbia due to the company’s bankruptcy.
Hanjin Shipping has reached bankruptcy during an ongoing slump in the shipping industry, which has recently affected other industry giants such as UASC, which suffered losses in H1, 2016.