KATHMANDU: Bankruptcy of Hanjin Shipping has created chaos among Nepali traders as tonnes of goods dispatched from the port of origin to Nepal are stranded offshore in Singapore, Colombo and Kolkata.
The vessels of Hanjin Shipping have been waiting since long to unload their cargoes at Kolkata port, but the port authority has not permitted the company to unload due to uncertainty of docking fees after the company went bankrupt some two months back. After news of Hanjin Shipping’s bankruptcy made headlines, Nepal Freight Forwarders’ Association (NEFFA) had sought the details of stuck cargoes from Nepal Bankers’ Association — the umbrella body of class ‘A’ banks in the country. This is because commercial banks issue letter of credit (mode of payment) to import goods from third countries.
“The details of stuck cargoes can be verified only through the banks that have issued the letter of credit,” said RB Rauniar, director of Himalayan Terminal Pvt Ltd — a Nepal-India joint venture company that manages Birgunj dry port. However, the banks are not disclosing the information citing sensitivity of the matter. “Banks are unwilling because merchants bringing goods through Hanjin are unsure whether they will be able to get the goods released and the disclosure may affect their businesses,” one of the bankers told The Himalayan Times on condition of anonymity. With the fate of Hanjin Shipping uncertain and due to lack of a concrete plan till date regarding the revival of the company, Nepal Rastra Bank (NRB) — the central regulatory and monetary authority — had not sought the details of letters of credit issued from banks for the cargoes that were being transported through Hanjin Shipping.
Hanjin was popular for transporting cargoes from East Asian countries namely, South Korea, Japan, China, Malaysia and Singapore, among others. As per information received by NEFFA from the Kolkata port authority, there is a significant amount of Nepal-bound cargo stranded at sea. The banks’ unwillingness to disclose the information sought by NEFFA has raised eyebrows. Reportedly, banks are also hesitant to disclose information because the uncertainty in docking of cargoes also poses risk in the credit repayment of the banks. Banks have significant portfolio in trade financing. Banks need to make loan provisioning for the goods that were being imported through Hanjin.
Anil Keshary Shah, vice president of NBA, said that the matter will be discussed during NBA’s meeting scheduled on Monday. On the other hand, empty containers returned from Nepal have also been parked at the yard of Container Corporation India — a subsidiary of India Railways authorised to transport Nepal-bound cargoes from Kolkata port. Because of this, the parking charges have been increasing as the port authority has halted the delivery of containers to Hanjin Shipping following the bankruptcy announcement, according to Rajan Sharma, Road Transport and Transit Committee chair of the Federation of Nepalese Chambers of Commerce and Industry.
