Judge Gives Temporary OK to Protect Hanjin Shipping in US

Its bankruptcy would be by far the largest in the history of container shipping, which is suffering its worst downturn in six decades because of slumping global trade and a slowdown in China.

They don't have a lot of time.

The financial woes of South Korean concern Hanjin Shipping Co Ltd, the world's seventh-largest ocean freight line, is causing a ripple effect that is disrupting supply chains across retail entering the busy fall and holiday season. HP also has Chinese-made computers on the firm's vessels.

On Tuesday, South Korean authorities rushed to piece together a capital injection. The U.S. Retail Industry Leaders Association also chimed in: "While the situation is still developing, the prospect of harm is significant and apparent ..."

"They paid an exorbitant amount of money for something that could have gone by ocean", Barich says.

And that has changed the fate of a container ship that was destined for Seattle.

"In my 20 years in the business, I've never seen anything like this", said Randy Chen, president of Impex International Inc., a New Jersey-based firm that provides direct import services and US -based warehousing of imports for more than 100 promotional products industry suppliers.

That's meant cargo headed to and from Asia is in limbo, much to the distress of merchants looking to stock shelves with seasonal fashions or Christmas toys.

"I had no expertise as I had been stuck home as a housewife" she said.

Chris Rogers, a research analyst at Panjiva, which tracks worldwide imports to the United States, said the situation isn't yet dire but could become so. But the shipping business has faced rough seas recently.

"These losses will continue to escalate so long as the cargo aboard these ships remain unloaded", Samsung said in the filing.

As Hanjin represents almost 8 percent of trans-Pacific trade volume for the US market, this has prompted the National Retail Federation to appeal to the Department of Commerce and the Federal Maritime Commission to work with the South Korean government, ports, and others to prevent disruption to the supply chain.

Peterson said that despite Hanjin's bankruptcy, "TTI is current in all of its payments to us".

"They're paying for their tractors while they're not getting any work", Kelly said.

Hanjin has struggled with debts and losses for years. Third, landed Hanjin containers are being turned down for processing in some cases. It is now considering chartering 16 freighter planes to take goods to customers - mostly in the US.

But even supposing that 100 billion won (US$91.4 million) is raised to cover the unloading fees at these key ports, transportation routes can not be opened up unless courts in various countries issue stay orders and negotiations with the countries in question about entering ports go smoothly.

Gold said TTI, which is used by several shipping lines other than Hanjin, is current on its port lease. About 540,000 containers could be delayed anywhere from a few days to more than a month. That wouldn't even cover fuel costs for the huge ships, he said.

Four main export items handled by Hanjin Shipping in 2015, by percentage.

A request for food and water was rejected, said the captain via a satellite phone and who declined to use his name citing company policy.