Hanjin Shipping vessels have been barred from unloading at the Port of Seattle after the Korean container shipping giant collapsed into bankruptcy protection overnight. Seattle joined other ports around the United States and the world in blocking Seoul-based Hanjin ships, fearing that the insolvent Asian shipper will never pay terminal fees. This move could damage apple shippers in Washington, as the season is just kicking off.
Ailing Hanjin filed for protection from creditors, swamped by $5 billion debts, after a Korean government bank refused to extend additional credit. All Hanjin Shipping's assets were seized under a court order.
The news threw the global freight forwarding and shipping logistics world into disarray, as players scrambled to re-book customers' containers on rival companies' ships and braced for rate increases as capacity shrank.
Noe Chavez, co-owner of Accelerated Global Logistics in Tukwila, said he was fortunate. None of his customers had cargo on Hanjin ships.
"But this is going to affect a lot of shippers, particularly in Eastern Washington, as the apple harvest season is beginning," Chavez said. "Because there is one less carrier, there is going to a be frenzy as people try to book refrigerated containers — and they may see rate increases."
Farmers produce more than $2 billion worth of apples a year in Washington, most of which are exported to Asia, Washington Department of Agriculture data shows.
A Hanjin ship was to arrive in Seattle on Saturday 3 September. Northwest Seaport Alliance spokeswoman Tara Mattina said it's unlikely to make it.
