Dubai ports operator DP World to minimise Hanjin disruption

The collapse of the South Korean shipper with debts of US$5.5 billion has caused widespread disruption across global trade networks with an estimated $14bn worth of cargo tied up as ships idle outside ports worldwide.
A Hanjin container ship docked at the Port of Long Beach in California. David McNew / AFP
A Hanjin container ship docked at the Port of Long Beach in California. David McNew / AFP

The ports operator DP World said it was working with customers to minimise disruption following the collapse of Hanjin Shipping.

At least 10 ships operated by the Korean company are in ­Dubai’s Jebel Ali Port, according to ­Hanjin data.

Two other ships have arrived in Abu Dhabi’s Khalifa Port Container Terminal.

The collapse of the shipper with debts of US$5.5 billion has caused widespread disruption across global trade networks with about $14bn of cargo tied up as ships idle outside the world’s ports.

“While we don’t publish data on client receivables, following Hanjin Shipping’s decision to file for court protection, we have been working with our customers and partners to minimise impact on world trade,” said a DP World spokesman in response to questions from The National.

“The filing for receivership is still at an early stage and we note that the exact form of the proposed restructuring plan is still unknown. We recognise the importance of our role as global trade enabler to the supply chain, so while protecting our interests, our main focus is limiting any disruption to service for our customers to continue the smooth flow of goods across our global network.”

The insolvency of the world’s seventh-largest container carrier is already hitting container rates, which could make it more expensive for people planning to ship goods or belongings to and from the Emirates.

Maersk Line, the world’s largest container shipping company, is already seeing a short-term rise in freight rates and an inflow of new clients, Bloomberg reported yesterday.

“There’s no doubt that we’re seeing a reaction in the rate market,” Klaus Rud Sejling, the executive in charge of Maersk Line’s east-west network, told the newswire. “The question is, what will happen with the rates in the longer term.”

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Published: September 12, 2016 04:00 AM

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