NRF: Hanjin bankruptcy causing ‘widespread disruptions’ to supply chains

The National Retail Federation, along with a coalition of 120 retail, manufacturing and agriculture groups, sent a letter to U.S. Secretary of Commerce Penny Pritzker asking her to continue to work towards a swift resolution for shippers.    The recent bankruptcy of South Korean ocean carrier Hanjin Shipping is causing “widespread disruptions” to supply chains across the country, according to the National Retail Federation (NRF).
   NRF, along with the Hardwood Federation and a coalition of 120 retail, manufacturing and agriculture groups, sent a letter to U.S. Secretary of Commerce Penny Pritzker asking the department to continue to work towards a resolution to the ongoing issues surrounding Hanjin’s insolvency.
   In the letter, the groups detailed a variety of concerns, including ongoing confusion about the location of cargo, as well as where it will eventually be unloaded, whether shippers’ goods could be seized by creditors, and if Hanjin’s vessels could be seized once they enter a port.
   The coalition noted that shippers and beneficial cargo owners are also facing higher fees to rescue their cargo from terminals and increasing freight charges from competing carriers as they attempt to book space elsewhere.
   “U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year,” the group wrote. “The recent bankruptcy filing has caused widespread disruptions in freight shipments worldwide.
   “The impact on small and medium sized companies could be particularly devastating if this situation is not resolved in a timely manner,” it added.
   The coalition thanked Secretary Pritzker for her outreach to the business community thus far and urged her to “continue to work with the South Korean government to bring about a swift and economically beneficial resolution that will allow cargo to move through the global supply chain and give certainty to U.S. businesses.”
   Import volumes at major container ports in the United States, however, should remain at “near-peak levels” in September despite these issues, according to the monthly Global Port Tracker report by the NRF and Hackett Associates.