Hanjin to Return 38 Vessels Next Year

By Aiswarya Lakshmi
Tuesday, June 28, 2016

Hanjin Shipping is planning to return a total of 38 chartered vessels once their contracts end as part of its restructuring efforts, reports the Korea Herald.

A company official said Hanjin was planning to return 20 containerships and 18 bulk vessels by 2017, but declined to disclose details. The company was put under a creditor-led restructuring program.
“We hope to save significant costs from the return. We will put our utmost efforts to stabilize the financial health at the earliest,” an official at the firm said.  
Of some 100 container ships that Hanjin Shipping operates, 63 are borrowed fleets. 
Container carriers normally borrow their chartered ships again after contracts end for operation but Hanjin decided to give back the vessels as the firm has massive debts reaching 5.6 trillion won (US$4.7 billion) as of end-2015.  
Hanjin has also announced plans to sell its container terminal operations in Tokyo (Japan) and Kaohsiung (Taiwan) to Hanjin Pacific Corporation. 
The company is also looking for investment from non-performing loan funds, but there is little progress.
Last year, Hanjin Shipping posted a net profit of 3 billion won, a turnaround from a net 423.3 billion won loss in the previous year.
Categories: Finance Logistics Ship Sales Vessels

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