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takyon [soylentnews.org] writes:

Hanjin Shipping Co Ltd has filed for chapter 15 bankruptcy [reuters.com]:

Troubled container shipper Hanjin Shipping Co Ltd (117930.KS) has filed for bankruptcy in the United States to protect its vessels from being seized by creditors, the [Wall Street Journal reported [wsj.com]], citing a filing by the South Korean firm.

The company's troubles are causing some alarm about the effects on global trade [cnbc.com]:

Hanjin Shipping's market share stands at 2.9 percent of total container capacity, but the shipper's recent filing for court receivership is putting global commerce in a tight spot ahead of the key holiday season. The unraveling has sent spot freight rates soaring in recent days while its vessels are being blocked from docks at ports in large numbers, stranding their contents for now.

"There is an immediate impact, as shipments already loaded on Hanjin ships are expected to face delays as a result of creditor actions, and recovery could take weeks or even months to be resolved," said H.J. Tan, a consultant at Alphaliner. "Shipments that have not been loaded will also need to be unstuffed, and shippers will need to find alternative carriers that are able to carry them."

The good news is that since Hanjin's global market share is relatively small, it can be filled soon by competitors, he said. Hyundai Merchant Marine plans to step up services by deploying at least 13 of its ships to fill demand on two routes that had been exclusive to Hanjin, Reuters reported. [...] "The timing is unfortunate, as it coincides with the peak shipping season to the U.S. and Europe that typically runs from July to September," Tan said. For now, retailers are also watching the situation unfold.

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