The confusion about the exact whereabouts of their cargo following the Hanjin Shipping bankruptcy has prompted a coalition of 120 business organizations across the US to petition US Commerce Secretary Penny Pritzker to bring about a resolution to the situation, according to reports.
The National Retail Federation (NRF) and the Hardwood Federation has rallied these organizations representing retailers, manufacturers, agribusiness and other enterprise sectors who were affected by Hanjin’s bankruptcy filing last August 31, after its efforts failed to raise cash to sustain its operations.
Among others, the sectors detailed the current confusion over the specific actions and details pertaining to their cargo on Hanjin vessels. A specific concern is whether the cargo owner’s goods will be seized by the defunct shipping company’s creditors once the ships are docked.
Further, the coalition reported that they are facing higher assessed fees to pick up cargo and the prospect of increasing freight charges as they explore alternative transport options.
“U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year,” NRF said in its letter to Pritzker.
“The recent bankruptcy filing has caused widespread disruptions in freight shipments worldwide…. The impact on small and medium sized companies could be particularly devastating if this situation is not resolved in a timely manner,” the letter also said.
