FMC’s Cordero is not surprised by Hanjin’s bankruptcy

Federal Maritime Commission Chairman Mario Cordero said in a speech to the National Customs Brokers and Forwarders Association of America that the industry should be better prepared for future liner carrier bankruptcies.    Federal Maritime Commission (FMC) Chairman Mario Cordero on Monday called for the container shipping industry to be prepared for future liner carrier bankruptcies in the wake of Hanjin Shipping declaring insolvency in late August.
   Hanjin’s plight has thrown many supply chains into chaos, while also stranding hundreds of thousands of containers on the carrier’s ships. On Monday, a U.S. court injunction (related to Hanjin’s filing in U.S. bankruptcy court) induced some of the handful of Hanjin’s vessels at anchor outside North America to begin being worked and have cargo unloaded.
   “We cannot be in a situation again where we don’t know what to do,” he said in a speech to the National Customs Brokers and Forwarders Association of America’s (NCBFAA) Government Affairs Conference Monday. “It’s no surprise we’ve had a bankruptcy of a significant carrier.”
   Meanwhile, Ed Greenberg, transportation counsel for the NCBFAA, said the Hanjin situation had presented some unusual circumstances for the association’s members. He noted that the injunction in the New Jersey bankruptcy court only pertained to import cargo owned by beneficial cargo owners aboard four Hanjin vessels that had yet to dock prior to its insolvency filing.
   In other words, the injunction didn’t apply to cargo from exporters or non-vessel-operating common carriers (NVOs). Greenberg also noted that there was still no clear direction on what companies should do with empty containers owned or leased by Hanjin.
   Then there’s the issue of outbound loaded containers stuck at terminals. Greenberg said one NVO with 84 containers trapped at the Maher Terminal in the Port of New York/New Jersey had been told to pay $290,000 to get those boxes released. After negotiations, the release amount was reduced to $40,000.
   “Hopefully the NVO will be able to pass those costs on,” he said. “This is all a moving target.”