Skip to Content

Blog

THE SCOOP ON HANJIN SHIPPING LINES BANKRUPTCY

Last Friday, a federal judge granted Hanjin temporary protection from vessel arrest and asset liens. A U.S. bankruptcy court in Newark, NJ is scheduled to rule this Friday, when the temporary protection order expires, whether to extend Chapter 15 privileges which protect Hanjin assets from seizure and ships from arrest.

There are currently five Hanjin ships now stranded off U.S. coasts. Three are located outside Los Angeles-Long Beach (LA/LB), one is outside of Savannah, and another is waiting to call the port of New York-New Jersey (NY/NJ). When the vessels eventually berth, importers will find stark differences in how much they have to pay to get containers released. The different approaches are already evident in how ports are handling stranded import containers. See below for information by port complex and other information regarding the impact to U.S. exports and equipment:

LA/LB and NY/NJ

In Los Angeles-Long Beach and New York-New Jersey, which are landlord ports, the private-sector terminal operators decide if they will allow a vessel to dock at their facility and how and when to release laden import containers. In most cases, they are demanding that beneficial cargo owners pay them up front for cargo-delivery charges before they agree to release the containers to truckers.

The Port of Long Beach reported Wednesday that Total Terminals International (TTI), which is jointly owned by Hanjin and Terminal Investment Ltd., reopened for delivery of imported containers to truckers, as long as the beneficial cargo owners paid the terminal delivery charges up front, but no vessels were docked at TTI. The port could not say why the terminal was refusing to accept Hanjin ships.

U.S. marshals have seized the Hanjin Montevideo at Long Beach at the behest of fuel suppliers owed nearly $800,000, according to local media. The Hanjin Greece, which had been anchored outside the Los Angeles-Long Beach port complex earlier in the week, is now in Mexican waters to use reserve fuel not allowed in U.S. emissions control areas that mandate low fuel sulfur content.

Hanjin had three vessels at anchor or floating off the Southern California coast on Wednesday, but the vessels did not dock at TTI in Long Beach or at any terminal in Los Angeles-Long Beach. The Southern California terminals reportedly were awaiting a final ruling from the New Jersey bankruptcy court on Friday before taking on the expense of working the vessels.

Savannah

In Savannah, by contrast, the operating port manages the marine terminal, and the Georgia Ports Authority is not charging Beneficial Cargo Owners (BCOs) to release Hanjin containers. It also isn’t charging demurrage on exports that were slated to sail on Hanjin. The Georgia Ports Authority noted that it is not consignees of Hanjin cargo at fault for the Korean line’s plight.

Charleston

To the north, the South Carolina Ports Authority (SCPA) has waived the non-vessel delivery fee for export loads out-gated. At the Port of Charleston, an operating port, import loads discharged on or after Sept. 1 will be placed on hold until such time as all SCPA charges are settled. The SCPA will collect all port and throughput charges totaling $350 per container from the BCO/responsible party with authorization required from Hanjin.

Prince Rupert, Canada

The only North American port to actually work a Hanjin vessel on Wednesday was Prince Rupert, British Columbia. The Canadian port began discharging containers from a Hanjin vessel on Wednesday. The Hanjin Scarlet had been anchored off the coast since Hanjin filed for bankruptcy protection last week.

U.S. Exports

Most U.S. terminals are refusing to load Hanjin export containers onto vessels. The terminals will release the export containers to truckers, once again if the BCO pays the terminal delivery fee upfront. The BCOs then have the Hanjin containers trucked to their warehouse where the contents are transloaded into containers belonging to other shipping lines, and those containers are then delivered to the terminals where those lines call.

Containers

Truckers at ports such as Los Angeles-Long Beach and New York-New Jersey are bracing for fees that terminal operators are charging for demurrage, which is the cost of storing containers on a terminal after free time has expired, and detention or per-diem fees, which are charged for the late return of containers to the terminals after they have been unloaded at BCO warehouses. Some truckers and BCOs claimed that unusually large demurrage fees were being levied by the Maher terminal in New Jersey.

Chassis

Another residual impact of the Hanjin bankruptcy is the impact it is having on chassis availability, especially in Southern California. Fred Johring, chairman of the Harbor Trucking Association, said thousands of empty Hanjin containers are sitting on chassis at warehouses and parked on streets throughout the region, in effect taking those chassis out of service because terminals are refusing to accept empty containers at their facilities. This number represents almost 10 percent of the total chassis pool in Los Angeles-Long Beach, aggravating a chassis shortage that already exists during the peak-shipping season, Johring said.

For guidance and with regard to your shipments, please stay close to our operations and pricing teams. Please understand that the first available space option is most likely the best one.

AMR Group is diligently working to find alternative shipping solutions to these issues, and we will continue to monitor the market and provide updates to you accordingly.

0 Continue Reading →

Trust in an uncertain world. Finding a qualified event logistics forwarder is key

Global shipping can be a minefield of red tape and corruption not to mention the time factor involved when shipping to an event or tradeshow.  Someone’s job could depend on it (literally).  Imagine for a moment you are a marketing manager tasked with getting the company’s latest gizmo to a tradeshow in Dubai.  Your company is counting on you to make sure the “star of the show” arrives on time and within budget.  By the way this event just became much more high profile since the CEO will be there along with 50 of your top company sales people will be on hand to witness the unveiling.  Better get to work, right?

The first step is to go to your corporate logistics department, right?  Wrong!  In our experience shipping for events and tradeshows is very different from most company’s corporate, day to day logistics process.  The hurdles are not only higher but they are altogether different.  The right answer is to reach out to someone who knows events and knows tradeshows.  Not only that but also knows how they work outside the US and Canada.

Shipping to events and tradeshows overseas is very different from shipping to shows in the US and Canada.  There is no such thing as a general service contractor like GES or Freeman and most of the time there is no “advanced warehouse”.  The other problem is customs clearance.  Your general cargo forwarder is not usually in tune with who the appointed onsite freight forwarder is and therefore they will not have inside knowledge about the requirements including all deadlines and specific types of import customs regulations for that specific country.  ATA Carnet, Temporary import bond, permanent vs. temporary import are all foreign to most general cargo forwarders and you most likely don’t have the time for them to “go to school” on these subjects.  So, what to do, what to do?

The answer is to reach out to an event logistics expert like AMR Group.  If you don’t know anyone in the field its best to rely on your trusted colleagues from the industry to provide referrals.  If you don’t have access to a network of colleagues then it may be of benefit to ask the show organizer for a referral or visit the website of the professional trade association for exhibition logistics professionals called IELA (International Exhibition Logistics Association) at www.iela.org.  There you will find a list of professionals who can help you.

Trust is important because someone’s job may be on the line.  Trust is important because your company reputation could be damaged and the outcome may affect future sales.  Trust is important because it helps relieve some of your fears of the unknown.

0 Continue Reading →

Brazil Welcomes ATA Carnet Program

rio-olympicsJust in time for the largest sporting event in the world Brazil has started accepting ATA Carnets for temporary importation of professional equipment and exhibitions.  The use of this type of internationally recognized document (which allows goods to enter the country on a temporary basis without paying heavy import tariffs or duty and tax) will be limited as the program is rolled out around the country but, we hope its introduction will encourage foreign participation at Brazil’s hundreds of events and tradeshows each year.

Brazil hosts many international cultural, political, sporting events, conferences, and trade shows every year. By adopting the ATA Carnet system, Brazil is making it much easier for U.S. exporters to participate and exhibit at these events. Brazil is the largest economy in South America, the 8th largest in the word and the United States’ 11th largest goods export market. Modern infrastructure and facilities as well as a population of 193 million makes this market very attractive to U.S. exporters and investors.

AMR Group can arrange ATA Carnet’s for our customers as well as guiding your event and tradeshow shipments to their final destination on time, every time!  Brazil’s announcement should reduce transit times and costs in the future.

With this great news we look forward to providing you with ATA Carnets to Brazil! Contact AMR Group Inc today and be the first to enter Brazil on an ATA Carnet! You can reach us at +1-702-800-6385 or by email at info@amrworldwide.com.

0 Continue Reading →

Cargo Insurance – a strong consideration

Liability is a word often used in the shipping industry and is the main reason one should consider obtaining Cargo insurance when shipping and especially for tradeshows.

1 Continue Reading →

Supply and Demand in Logistics

When it comes to US exhibitors shipping full truckloads both to and from domestic tradeshows we frequently get asked why the rates are not always the same since it is after all the same distance. In the interest explaining why, it is most easily explained by the single biggest contributing factor which are “markets”.

0 Continue Reading →