South Korea’s biggest shipping group Hanjin is set to enter receivership after its creditors refused to provide further funding to the indebted firm.
Hanjin’s board unanimously agreed to make the court filing at a meeting on Wednesday, a company spokesman said.
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Time For Truth: (10 News) – South Korean shipping giant Hanjin to enter receivership
“All hands on deck” may become a thing of the past.
Ship designers, their operators and regulators are gearing up for a future in which cargo vessels sail the oceans with minimal or even no crew. Advances in automation and ample bandwidth even far offshore could herald the biggest change in shipping since diesel engines replaced steam.
When most recently reporting on the latest European banking crisis, yesterday we observed a surprising development involving Deutsche Bank, namely the bank’s decision to quietly liquidate some of its shipping loans. As Reuters reported, “Deutsche Bank is looking to sell at least $1 billion of shipping loans to lighten its exposure to the sector whose lenders face closer scrutiny from the European Central Bank.
Three billion tonnes of crude oil and refined products are shipped on huge tanker vessels worldwide every year. But recently, some of these ships have stopped. In fact, since March, many more than is usual have simply been anchored off ports like Singapore and Rotterdam in the Netherlands – and it’s not immediately clear why.
The International Energy Agency (IEA) has been monitoring the situation. It has tracked just under 94 million barrels of unrefined crude oil in what’s known as “floating storage” at the end of May. And Clarksons, a shipping analyst firm in London, says it has tracked an increase from 85 to 120 oil tankers at anchor around the world.
The Suez Canal was one of the most significant engineering projects of the 19th Century. It was a gargantuan task that took nearly 20 years to build and an estimated 1.5 million workers took part – with many thousands dying in the process. But when it finally opened in 1869, ships could travel from the Red Sea – between Africa and Asia – to the Mediterranean, cutting weeks off a journey. It was a revolution for trade.