Hanjin Shipping Co.'s vessels are getting stranded at sea afterthe South Korean container mover filed for court protection,roiling the supply chain of televisions and consumer goods ahead ofthe holiday season.

LG Electronics Inc. is trying to find new carriers for itsgoods, the world's second-largest manufacturer of televisionssaid. Shipments through Hanjin account for between 15% and 20% ofLG's deliveries to America. Hyundai Merchant Marine Co., the nation'ssecond-biggest container line, stepped in saying it plans to add 13 more vessels to ease the squeeze.

Woes at Hanjin Shipping, South Korea's largest sea containershipping firm and the world's seventh-biggest with a 2.9% marketshare, are derailing the supply chains of companies that need tosend goods well in advance of the year's biggest shopping season asThanksgiving and Christmas holidays approach. TVs, cars andsneakers sail about 10 days to reach Los Angeles from Asia whilethey could take as many as 30 days to Rotterdam. Hanjin Shippingowns 59 of the 132 container and bulk ships in its fleet.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.