Hanjin Remains in Trouble

Hanjin, the Korean shipping line, was still in some trouble as we went to press (Newsflash – Hanjin Failure May Mean Bad Xmas for Samsung & LG Buyers!), with reports that 89 container ships that it had chartered still in ‘limbo’ although on 22nd September, Korea Air Lines (the biggest shareholder with a third of the company) approved a loan of 60bn Korean won ($54m) to help sort out issues of cargo stuck at sea.

Analyst Comment

At the moment, this doesn’t seem to have had a dramatic effect on supply in Europe. In a filing intended to protect its shipments from seizure by creditors of Hanjin, Samsung Electronics said that it had about $25 million of goods in 304 containers due for its visual display business in Mexico stuck in containers. A further $13.5 million was tied up in domestic appliances. Estimates of $14 billion have been put on the value of all goods stuck in the dispute. (BR)