+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

A ghost fleet of cargo ships with nowhere to go is running out of food and water

Sep 7, 2016, 22:41 IST

Flickr/Je.T.

Last week, Hanjin shipping, one of the largest container shipping lines in the world, filed for bankruptcy protection.

Advertisement

At the time of its collapse, Hanjin had unpaid bills totally more than half a billion dollars, Reuters reported.

As a result, ports around world, concerned over the company's ability to paid port fees, have barred Hanjin's ships from docking.

According to Bloomberg's Sohee Kim and Kyunghee Park, 85 of the company's ships have been left in limbo - floating off the coasts of ports around the world.

"Our ships can become ghost ships," Kim Ho Kyung, a manager at Hanjin Shipping's labor union, told Bloomberg. "Food and water are running down in those ships floating in international waters."

Advertisement

Hanjin's ship usually carry enough food and water to last its crew for several weeks.

Currently, Hanjin's fleet is carrying roughly $14.5 billion dollars worth of cargo and its inability to reach port is a considered a significant threat to the global logistics network.

In addition, there is fear that the ships or its contents maybe seized by the company's numerous creditors. In fact, at least one of Hanjin's ships has already been seized by creditors in Singapore, Reuters reported.

Even though a US judge has allowed the company's ships to enter US ports without fear of creditors seizing its ships, there are concerns that Hanjin may not be able to afford to pay people to unload the vessel, Tom Corrigan of the Wall Street Journal reported on Tuesday.

Hanjin Shipping's parent company, Hanjin Group has agreed to inject $90 million into its troubled subsidiary. This includes nearly $37 million from the company's chairman Cho Yang-Ho. Hanjin Group's other holdings include South Korea's flag carrier, Korean Air.

Advertisement

NOW WATCH: Here's what happens when you order something on Amazon Prime Now

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article