X2 Magazine Issue No. 14 | Page 6

HANJIN SHIPPING COLLAPSE LEAVES UP TO 15,000 CARGO CONTAINERS PILED UP A s many as 15,000 steel cargo boxes leased or owned by the failed Hanjin Shipping Co. have nowhere to go. Since the company collapsed at the end of August, the orphaned containers have piled up in and around the ports of Long Beach and Los Angeles — and no one’s quite sure what to do with them. They can’t stay here; the real estate is too scarce, especially ahead of the busy holiday season. Some people were hinting to take (the boxes) out in the desert and abandon them,” said Dan Monnier, who sits on the board of the Los Angeles Customs Brokers & Freight Forwarders Association, which arranges transportation for retailers. “It sounds cute, but remember, (the containers) still belong to the bankrupt company Hanjin.” “ Lawyers for Hanjin could not be reached for comment. Hanjin, the seventh-largest shipping company in the world, failed to secure funding from the Korea Development Bank on Aug. 30,then abruptly ended services leaving ships and crews stranded and billions of dollars worth of cargo in limbo. As the courts slowly unwind the finances of the company and work to get creditors paid, the company’s assets and leased property — including the steel containers — are scattered around the world. Container company Seaco Global Ltd., based in London, leased about 50,000 containers to Hanjin that it cannot account for, said Neil B. Klein, an Irvine-based attorney representing the company. Right now, he is looking for the location of those boxes. At the local ports, there may finally be a solution in store for the blue containers with Hanjin painted in white. On Friday, Alex Chernin, a spokesman for logistics company Total Transportation Services Inc., confirmed the company is hammering out a plan to open up a 100-acre facility in Ontario where the containers can be stored. source: Hellenic shipping news (Click here for the full read)