News has broke that South Korean shipping company Hanjin Shipping has filed for bankruptcy in the U.S. They have already filed this motion in South Korea last week and are seeking dozens of further motions from other countries to protect its ships and cargoes from further forfeiture and seizure.
According to multiple reports out of South Korea, and via USA Today, two of the country’s biggest manufacturers, LG and Samsung, have been significantly impacted by this development. Hanjin’s assets are now being frozen and its vessels stranded as ports turn away the insolvent shipping company.
In a letter released on September 1, Retail Industry Leaders Association (RILA) President Sandra Kennedy urges for immediate action in response to the Hanjin bankruptcy. “U.S. bound cargo is already being delayed at origin ports,” she said, “and Hanjin ships loaded with cargo idle unable to enter U.S. ports, containers are being detained on arrival clogging already congested ports.” According to USA Today, U.S. government officials and corporations have already made further motions to seek “support for Hanjin to temper the repercussions of the shipper’s dilemma.”
Hanjin Shipping Bankruptcy Impact In Petrochemical Industry
Along with the significant impact this will have in the technological realm with the upcoming holiday boon in electronics sales, the petrochemical industry will also feel the disturbance this ripple effect will have on the economy as a whole.
The Hanjin bankruptcy is, indeed, a crisis, one which could result in serious product shortfalls, creating an even more heightened level global chemical competitiveness. The chemical economy was already shaping up to be aggressive as the fall months begin. This additional development, however, of Hanjin Shipping’s filing adds an amplified sense of awareness for all chemical importers, exporters, and distributors.
Rest assured, GreenChem has done its due diligence to book alternate vessels and shipping plans to avoid being affected by this ongoing issue. Our experienced, in-house multi-lingual import and export specialists integrate unrivaled service and support, superior quality, and environmental health and safety measures at every step. By combining local and global supply chain expertise, GreenChem affords you flexible logistic options, making buying product simple and adaptable to your needs.
Be sure to reach out to your dedicated GreenChem sales rep for further insight on the latest chemical news and how this incident might impact you.
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