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Ports Jittery Over Hanjin Payments

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Hanjin’s bankruptcy is continuing to impact the shipping industry as Northwest Seaport Alliance of Seattle and Tacoma is requesting guaranteed continued payments from Total Terminals International (TTI) for its lease with the Port of Seattle.

The terminal operating company, which Hanjin Shipping owns a 54% stake in, has been approached for monthly rent by Northwest Seaport Alliance, which has a lease until 2025, in a letter stating that it has posted an $11.25 million security bond.

According to a port spokesperson, TTI have not taken any action regarding its lease at Terminal 46.

In a letter to TTI, exposed on Puget Sound Business Journal, Northwest Seaport Alliance states: “Hanjin’s commitment to guarantee the full performance of the lease no longer meets the requirements for Lease Security.

“Accordingly, this letter formally requests that TTI meet the requirements of the lease by providing Lease Security Equivalent to 12 months of the Minimum Annual Guarantee (including leasehold tax Amounts) in the amount of $11,250,237.26.”

Earlier this week it was reported that South Korea-based shipping line Hyundai Merchant Marine, and Swiss-based global container shipping company MSC, have purportedly teamed up to buy a stake in Hanjin Shipping’s US-based port terminal.

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