With the government of South Korea unwilling to rescue the country’s largest shipping line, liquidation seems the most likely outcome for Hanjin Shipping.Shipping restructuring specialists speaking at the Capital Link New York Maritime Forum on Sept. 13 predicted that Hanjin Shipping will ultimately be liquidated, not rehabilitated.
Hanjin will likely be liquidated rather than rehabilitated because of its $5.4 billion in debt and the incredibly difficult market dynamics now at play as overcapacity shows no sign of abating in the wake of Hanjins collapse. For example, on the trans-Pacific, where Hanjin had 7 percent of deployed capacity, spot rates jumped 51 percent the week of Hanjins collapse, but then remained flat the following week. …
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