Hanjin Containers Rejected by ILA

Hanjin Shipping lines is now facing a new challenge as it continues operations of loaded vessels en route to final destination. Although it seemed the issue of stranded Hanjin ships and cargo may be tapering to an end with the release of funds to pay terminal handling and unloading fees, a new problem has arisen for the South Korean carrier. The International Longshoremen’s Association is refusing to outgate or onboard Hanjin containers, citing concerns over unpaid royalties of $1 million. These royalties are a per-ton fee that contribute to funds supporting union benefits. Other carriers’ containers are not being affected at this time.

This roadblock to the successful release of Hanjin cargo is compounded by draymen challenges related to termination of empty Hanjin containers and storage/chassis fees to be paid.

Shapiro will continue to monitor the situation closely and will advise of any changes.