Hanjin Shipping Co. filed for bankruptcy protection in August. Three of the bulk carriers that it has been chartering have been sold, a development that
the
Wall Street Journal
said
marks the start of a “fire sale” of its fleet and “the clearest sign yet … that the South Korean government has no plans to bail out the shipping company.”
Japanese owner Kumiai Senpaku is selling the
Hanjin Matsuyama
, capable of moving about 160,000 tons of cargo, to a Chinese buyer. Hanjin has not made charter payments since early summer, the
Journal
article said. Two smaller vessels, the
Hanjin Liverpool
and
Hanjin Isabel
, were also sold.
Hanjin is the world's seventh biggest container operator. Of its 91 container ships, 61 are chartered, not owned, the
Journal
article said. Marcus Baker of Marsh Ltd. told the
Journal
that “the charterers can either go back to the spot market and charter their ships at a significant discount, or if they are lucky find another time charter, which is unlikely.”
Baker told the
Journal
that many chartered and owned Hanjin ships are avoiding ports for fear they will be seized.
Cho Yang-ho, chairman of Hanjin Shipping's parent, Hanjin Group, spent 40 billion won ($36 million) on Sept. 13 to help unload cargo from ships. Former Hanjin Shipping chairwoman Choi Eun-yung spent $9 million, the article said.
Cho Yang-ho's daughter Heather Cho was arrested in December 2014 for ordering a Korean Air Lines jet to return to the gate because she was angry over the way a steward had served nuts to her. Korean Air Lines is one of Hanjin Group's holdings. (Source:
Wall Street Journal
, Sept. 13, 2016.)
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