Statement Regarding Status of Hanjin Shipping
On September 2, 2016, Hanjin Shipping petitioned for recognition of the Korean proceeding in the United States Bankruptcy Court for the District of New Jersey in Newark, New Jersey, and requested bankruptcy protections (Case No. 16-27041). The court held a hearing on September 6, 2016, and issued an interim provisional order. The court will hold a second hearing on Friday, September 9, 2016, at 10:00 a.m.
Contact: John K. DeCrosta, 202-523-5911
The Federal Maritime Commission is aware that Hanjin Shipping has advised its customers that the company’s application to engage in a voluntary restructuring process was denied by its creditors. The Commission is also aware that Hanjin Shipping has disclosed it has filed for court receivership and that these two actions combined have caused uncertainty among the American shipping community about cargo in transit with Hanjin Shipping.
For U.S.-based shippers and cargo owners trying to determine what options they have, the Commission shares this initial guidance:
- This is a non-United States legal matter at the moment. Hanjin Shipping is a company located in the Republic of Korea and has applied for receivership in that country.
- This is a legal matter and as such, it is important that affected parties, including shippers, consult with their attorneys on what remedies are available to them.
- The Commission will be vigilant in watching for, and quick to act on, any improper behavior by other carriers and regulated parties (such as marine terminal operators, non-vessel-operating-common-carriers, and freight forwarders) that would constitute violations of the Shipping Act.
- The Federal Maritime Commission has no jurisdiction when it comes to resolving bankruptcy claims and does not intercede in legal actions between third parties that will be heard by the courts.
- The Commission is concerned about the operational and competitive impacts of Hanjin Shipping’s status on the shipping industry broadly. Our staff will be closely monitoring for the foreseeable future for any developments that might impact shipping markets.
The Commission will issue further updates and guidance as circumstances and developments warrant.
The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.