Several ocean carriers have decided to launch various routes in order to fill the void from Hanjin’s halted operation.
UPDATED Friday, September 9
In the wake of Hanjin Shipping filing for receivership in Korea last week, 2M Alliance members Maersk Line and Mediterranean Shipping Company (MSC) say they are launching a new weekly transpacific service, while South Korea’s second largest shipping company, Hyundai Merchant Marine (HMM), is adding two new services on major trades, in addition to joining fellow South Korean carriers Korea Marine Transport, Sinokor Merchant Marine and Heung-A Shipping to form a new vessel sharing alliance to serve the intra-Asia trade.
Maersk is calling the new service the TP1, while MSC is calling it the Maple.
MSC said explicitly it was being
launched “to assist shippers following the recent Hanjin announcement.”
While not explicitly
mentioning Hanjin, Klaus Rud Sejling, head of Maersk Line’s East-West
Network, said, “We are responding to increased demand in the
transpacific. With supply chains disrupted, many customers are
approaching us for transport solutions for their cargo. The TP1 service
is a stable, long term solution to meet our customers’ needs.”
The service will be launched Sept. 15.
The companies said for the first few sailings (MSC said two, Maersk said three), the service will call Yantian, Shanghai, Busan and Long Beach.
MSC said the service will then have a Prince Rupert, Busan, Shanghai and Yantian rotation. Maersk said the rotation is still subject to negotiation.
“We can confirm the TP1 and Maple services are the same and part of the 2M network with the first three sailings calling Los Angeles/Long Beach. The final, long term setup in terms of ports of call, etc, is still under discussion and we will communicate when a final conclusion has been reached. The intended vessel size for the TP1 service is Panamax vessels. Sailings will be decided based on market demand and therefore may be carried out with different sized vessels in the future,” said Maersk in a statement.
Meanwhile, the Korea Herald reported that the “Mini Alliance” formed between HMM, Korea Marine Transport, Sinokor Merchant Marine and Heung-A Shipping, plans to launch from the end of September in an effort to reduce damage caused by Hanjin’s halted operation.
The alliance plans to deploy 15 vessels on four southeast Asian routes, which will operate between South Korean port cities to ports in Singapore, Malaysia, Indonesia, Vietnam and Thailand.
Last week, Korea’s Financial Services Commission (FSC) also said Hanjin’s rival carrier HMM will immediately go into emergency management to minimize disorder in cargo delivery and damage to shippers. HMM will add two services to routes that used to be served exclusively by Hanjin Shipping.
HMM will deploy four ships in a string between the ports of Busan, Kwangyang and Los Angeles; and nine ships between Korea and Europe.
Robert Hyatt, manager of marketing for HMM (America) Inc., said the first of what he described as “extra loaders,” the Hyundai Forward, will depart Busan Sept. 8 and arrive in Los Angeles Sept. 19. The Hyundai Forward has a capacity of 4,571 TEUs, according to HMM’s website.
Korea’s Yonhap News Agency reported that “officials from the U.S. Commerce Department will visit South Korea on Friday to discuss how to ease crippled cargo shipment with government officials,” citing unnamed industry and government sources.
Yonhap added, “It is not immediately known who will lead the U.S. delegation, but a ranking U.S. official is expected to visit here, given that a meeting with Vice Minister of Oceans and Fisheries Yoon Hag-bae is scheduled.”
In a Sept. 6 letter, members of California’s Congressional delegation and PORTS Caucus including Janice Hahn, Allan Lowenthal, Grace Napolatano, Loretta Sanchez and Julia Brownley, asked to Secretary of Commerce Penny Pritzker to “step in and start discussions with Hanjin and South Korea to come to an agreement that guarantees our ports and our workers will be paid and these ships will be unloaded.”
Hahn said, “We are dealing with an unprecedented global crisis but the first thing we must focus on is getting the Hanjin crews to safety, getting these ships unloaded, and ensuring our local workers are paid.”
American Shipper was not able to immediately confirm the visit with the Commerce Department.
A hearing is scheduled in Newark, N.J. on Friday to further consider Hanjin’s Chapter 15 petition to recognize the company’s rehabilitation proceeding in Korea. Judge John Sherwood of the U.S. Bankruptcy Court for the District of New Jersey moved to recognize receivership proceedings in South Korea for the now insolvent ocean carrier Hanjin Shipping on Tuesday, but said he would hear arguments tomorrow to ensure creditors receive adequate protection.
Jon Gold, vice president of supply chain and customs policy at the National Retail Federation said, “Retailers are still trying to recover cargo that has arrived at the terminals.”
He said, “Things are still a bit unclear,” following the Chapter 15 hearing on Tuesday. “Some terminals are releasing cargo after getting paid, and some are not unless Hanjin gives them the okay. I’m still hearing that some retailers even after paying are still not able to get containers. We hope that Friday’s additional hearing will provide guidance and direction for what is supposed to happen and how shippers can get their cargo.”
Yonhap said, South Korea Finance Minister Yoo Il-ho told a parliamentary hearing in Seoul Thursday that although the government is making an all-out effort to normalize cargo delivery, that, “when we carry out full corporate restructuring, we need to remain firm to the principles that we’ve set up. As a result, some companies like Hanjin Shipping can go into court receivership.”
Yoo added, “The government has decided not to give full support to a troubled company and help it survive by pouring tax payers’ money into it.”
While the Port of Prince Rupert said that cargo was being offloaded from the 4,600-TEU Hanjin Scarlet in British Columbia, other Hanjin ships remain at anchorage in Long Beach or at sea off the coast of Mexico.
The Hanjin Miami, which was reportedly scheduled to call Maher Terminal in New York Sept. 2, was not in port and was reportedly anchored in Bermuda. The Coast Guard in New York said it had no Hanjin vessels scheduled to arrive in the Port of New York and New Jersey for the next 96 hours.
The Port of Virginia has set up a website explaining its policies on how it is handling Hanjin freight. “For release of Hanjin import containers from any Port of Virginia facility we must receive payment of release charges prior to pick-up,” the port said. “The release charge is $325.00 per container.”
The South Carolina Ports Authority said it will “collect all port and throughput charges totaling $350 per container from the BCO (beneficial cargo owner)/responsible party with authorization required from Hanjin. This process will be further refined, but payment is required prior to manual release of hold and outgate.”
The Port of Boston said it has no plans to charge additional fees beyond whatever regular fees Hanjin customer pay, saying it does not want to undermine relationship with shippers.
The Northwest Seaport Alliance, which encompasses both the Port of Seattle and Tacoma has set up a special web page about the impact of Hanjin’s decision to file for receivership.
Hanjin containers are handled at three Northwest Seaport Alliance terminals: Terminal 46 in Seattle, and Husky Terminal and Olympic Container Terminal in Tacoma. Olympic, which is where Yang Ming ships dock said that customers that want to pick up Hanjin import containers must contact Hanjin import
customer service to release the carrier hold and
pay a $317.56 fee for each import container and $90.19 to dray-off export containers. Shippers are also told to “bring your own chassis for Hanjin import pick-ups.”
Various carriers are adding new routes in reaction to Hanjin insolvency
