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Disruption at US ports due to Hanjin collapse to last two - three months

Disruption at US ports due to Hanjin collapse to last two - three months
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.

The report by the USDA noted that as a result of Hanjin’s filing for receivership there would be some impact/changes to trade between the US and Korea.

“It is almost certain that difficulties with port operation and shipping lines will occur for the next 2-3 months,” the report said.

While Hyundai Merchant Marine would be adding four 4,000 teu vessels to the Gwangyang – Busan – Los Angeles route this would not be enough to cover the full amount of freight that Hanjin had been handling.

“US exporters are encouraged to ensure that their brokers and shippers are arranging alternative transportation methods,” the USDA said.

“We anticipate that these shipping difficulties will moderate as additional capacity comes online and as the Korean shipping industry gains a better handle on Hanjin’s situation.”

Meanwhile a temporary bankruptcy protection order granted by a US judge earlier this week has failed to bring Hanjin ships into port to unload as had been hoped. Hanjin vessels remain at sea of the US West Coast and countries around the world, with reports that fuel and supplies are starting to run low.

The Korean shipowner is returning to the courts on Friday for hearings to make the bankruptcy protection order permanent.

Read all the background to the Hanjin Shipping bankruptcy on our timeline