PPAI Joins Calls For Swift Hanjin Bankruptcy Resolution
PPAI has joined 119 trade associations in urging the Department of Commerce to resolve the Hanjin bankruptcy situation. The South Korean shipping giant, representing about eight percent of the trans-Pacific trade to the U.S., declared bankruptcy earlier this month, putting its ships and containers in limbo.
Written by the National Retail Federation, the letter encourages Commerce Secretary Penny Pritzker to continue to work with the South Korean government on a swift and economically positive resolution to the situation.
The letter states, “U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year. The recent bankruptcy filing has caused widespread disruptions in freight shipments worldwide.”
Hanjin’s bankruptcy, the letter notes, leaves a number of issues up in the air. Shippers wonder when Hanjin’s ships will be allowed in ports and, if they are, whether the goods they carry will be seized by the company’s creditors. There are also concerns over cargo stuck at overseas ports, including where it is located and how it will be transported.
The letter also warns of knock-on effects of the bankruptcy. “The trade community is also facing steadily increasing freight charges as they look for new transportation options as well as concerns about fees assessed on cargo. The impact on small and medium-sized companies could be particularly devastating if this situation is not resolved in a timely manner.”