CE Companies Seen Among Those Most Vulnerable to Hanjin Bankruptcy

South Korea's Hanjin filed for court receivership in recent days, raising questions about the effect on future shipping rates and more immediate supply-chain disruptions. "Samsung Electronics, with a steady flow of shipments from operations in Asia to its US-based companies, is both the top shipper and consignee using Hanjin Shipping US import routes," Datamyne said. LG Electronics was the next biggest shipper of products using Hanjin during that time frame, it said. Hanjin, Samsung and LG didn't comment Friday.

Using the same data broken down by tariff codes, sound and TV equipment accounted for about 10 percent of Hanjin's container space in that period, Datamyne said. The data didn't include shipments now in transit. What will happen to goods currently on Hanjin remains an open and worrisome question among industries dependent on shipping. “Retailers’ main concern is that there is millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this," said Jonathan Gold, National Retail Federation vice president-supply chain and customs policy, in a statement. "Some of it is sitting in Asia waiting to be loaded on ships, some is already aboard ships out on the ocean and some is sitting on U.S. docks waiting to be picked up. It is understandable that port terminal operators, railroads, trucking companies and others don’t want to do work for Hanjin if they are concerned they won’t get paid. However, we need all parties to work together to find solutions to move this cargo so it does not have a broader impact on the economy."

There are a "variety of possible outcomes here," emailed Ed Greenberg, transportation counsel for the National Customs Brokers & Forwarders Association of America. "We recommend that you not pay Hanjin for the transportation of cargo until goods are actually delivered into your possession and control." A wave of creditors, including the suppliers of goods on Hanjin's vessels, may seek to seize Hanjin vessels to protect their interests, Greenberg said. "There is not much that can be done about shipments that are already on Hanjin vessels," he said. "We have heard from an inside source at Hanjin that it intends to 'protect' such current shipments, which probably means at the least that it will endeavor to complete voyages in progress and deliver the goods (to the extent that the vessel is allowed to enter the port.)"

Once creditors seize a ship, the "goods themselves will not be subject to a creditor's lien; however, freight charges owed on collect shipments will probably have to be paid because they will be considered Hanjin's assets," Greenberg said. Shippers may then need to make separate arrangements for containers, he said. Even if no seizure occurs, "it may well be that arrangements will need to be made to make sure that goods in Hanjin's possession or control are released and then moved to final destination," he said. Meanwhile, Canadian Importers and Exporters Association President Joy Nott released a statement urging importers and exporters to check their insurance policies to help mitigate potential impacts to their Canadian operations.

The Federal Maritime Commission is watching closely for any fallout from the bankruptcy filing but the FMC's role is largely observational for now, the agency said in a statement. It said the commission "is concerned about the operational and competitive impacts of Hanjin’s status on the shipping industry broadly," and FMC "staff will be closely monitoring for the foreseeable future for any developments that might impact shipping markets." But the FMC said it "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."