Hanjin Shipping’s financial troubles started in May. By August 31, the seventh largest container shipper in the world files for court receivership, the biggest bankruptcy ever seen in container shipping history. Here’s a timeline of all the facts:
- EARLY MAY: Hanjin Shipping received creditor approval for a voluntary restructuring.
- MAY 23: Seaspan declined an offer of shares in Hanjin in exchange for a charter rate cut.
- JUNE: Hanjin Group says it will invest US$21m and Hanjin Shipping starts to sell assets.
- AUGUST 11: South Korea’s government said it has no plan to offer financial aid to Hanjin Shipping
- AUGUST 16: Hanjin Shipping extended the losing streak with a second quarter loss of US$182m.The deadline for its voluntary restructuring agreement is extended by a month to early September.
- AUGUST 25: Hanjin submits a financial plan proposing an injection of US$360m via selling stock to affiliate Korean Air and raising another US$90m from other asset sales.
- AUGUST 31: Hanjin’s board unanimously voted to file for receivership after creditors reject the plan. Reports of vessel arrests in Singapore and Shanghai.
- SEPTEMBER 1: Ports and tug companies start to refuse Hanjin ships.
- Containerships operated by Hanjin are left stranded outside ports.
- SEPTEMBER 5: Hanjin Shipping has filed for bankruptcy protection in the US to stop creditors from seizing assets and arresting vessels. The CKYHE alliance has also suspended its membership while CMA CGM terminates agreements on 5 joint services.
- SEPTEMBER 6: Hanjin Group provides $90 million as it seeks to unload its stranded vessels.
- SEPTEMBER 8: Shippers, suppliers, ports and intermodal companies file documents in US courts asking for supply chains to be allowed to move without financial risk to them.
- SEPTEMBER 9: A report by the US Department of Agriculture (USDA) warns that disruption to ports and shipping caused by the failure could last two to three months.
- SEPTEMBER 12: A Hanjin Shipping vessel unloads cargo at the Port of Long Beach. At least three more cargo ships are expected to follow suit at the U.S. port.