SEOUL: Hanjin Shipping, which used to be one of the world’s top 10 shipping companies, was declared bankrupt by a South Korean court after months of uncertainty.
Hanjin’s collapse has hit the industry had sending shock waves throughout. For years, the global economic downturn had affected profits across the cargo shipping industry. It led to overcapacity, lower freight rates and rising debt levels.
After Friday’s official bankruptcy, the court handling the liquidation process will proceed to sell off the remaining assets and give the money to the creditors.
For the seamen, the collapse of their company meant that almost all of them lost their jobs. Hanjin’s ships had been crewed with South Korean officers and engineers and an international mix of seamen hired through agencies.
“Everyone will be seen to have had a hard time in 2016,” says Jensen. Fellow shipping giant Maersk, for instance, earlier this month revealed a $1.9bn net loss for 2016 – just its second annual loss since World War Two.
“2016 was the bottom of the market, but the climb upwards towards a more balanced market will take two to three years to fully accomplish,” says Jensen.
