Stranded Hanjin Cargo Off California Finally Unloads
A container ship owned by bankrupt Hanjin Shipping Co Ltd idled for days off the Southern California coast was allowed to dock in Long Beach and begin unloading cargo early Saturday, reports Reuters.
The Hanjin Greece docked at the Port of Long Beach in California early Saturday morning and workers were hauling off containers of products destined for U.S. retailers, labor union officials said.
The Greece was allowed to dock after U.S. and Korean bankruptcy courts allowed Hanjin to spend $10 million to unload that ship and others, according to Reuters.
The Greece was one of four vessels that were blocked from entering or leaving the port after Hanjin filed for bankruptcy protection on Aug. 31 in South Korea and the U.S. on Sept. 2.
Korea Herald quoted market watchers as saying that the cash-strapped shipping company needs an estimated 170 billion won ($150 million) to complete the unloading.
The expenses include the costs of services from coast pilots and tug boats as well as lashing and cargo checks.
“In order to end the Hanjin Shipping trouble, it has to first deal with accounts payable to oil companies, unloading costs for terminal companies and railroad shipping expense,” the US-based lawyer Kim Jin-jeong told a local business newspaper Chosun Biz.
“The funding of 100 billion won to be provided by the group is too small to address the issue. The company desperately needs help from its creditors and the government,” he added.
Dozens of ships around the world were stranded because Hanjin couldn't cover fuel bills or guarantee that dockworkers, crane operators, tugboat captains and others would be paid for their services. The vessels reportedly contain about $14 billion worth of merchandise.
