Once the world’s seventh largest container operator, Hanjin Shipping is in the midst of collapse. On monday, Hanjin reported a third quarter operating loss of more than $260 million.
Meanwhile, the crippled operator, which declared bankruptcy in August, is working to shut its European operations, and just last week, let go of hundreds of crew members.
CCTV’s U-Jean Jung takes a look at one company’s downfall and its impact on the country’s entire shipping industry.
South Korean shipping industry in crisis as Hanjin collapsesOnce the world’s seventh largest container operator, Hanjin Shipping is in the midst of collapse. On monday, Hanjin reported a third quarter operating loss of more than $260 million. CCTV’s U-Jean Jung reports.
Last week, Hanjin issued a 30-day layoff notice to 560 of its South Korean shipping crew members.
Analysts said it could be just the beginning for South Korea’s shipping industry.
Hanjin is saddled with more than $5 billion worth of debt, and it’s been forced to sell major assets to pay it off.
The Korean Maritime Institute estimates as many as 11000 workers serving the country’s shipping industry could lose their jobs.
Hanjin’s fleet has dwindled to about a tenth of its pre-bankruptcy size, and some of its remaining vessels are still out at sea, where crew members’ jobs are at least temporarily protected.
Under South Korean law, workers cannot be laid off until they disembark-but the survival of the company seems unlikely.
Seoul’s Central District Court on Monday picked South Korea’s Korea Line as the preferred bidder to acquire Hanjin’s Asia-US operations, and a stake in the Long Beach Terminal in California, beating out Hyundai Merchant Marine.
Sung Won Sohn discusses South Korean economy
To discuss in details the South Korean economy, CCTV America’s Michelle Makori spoke with Sung Won Sohn, professor of economics at California State University, Channel Islands.