Troubled Hanjin's fleet shrinks to a tenth of its size

SINGAPORE (Nov 14): Hanjin Shipping Co.’s fleet has shrunk to about a tenth of its size after the South Korean container line returned most of its chartered vessels to owners in the weeks following its bankruptcy filing.

All but three of the remaining 14 ships are either stranded or have been seized over unpaid bills. Hanjin once operated 97 box ships, including 61 that were chartered. As overcapacity depressed freight rates and Hanjin’s debt piled up, lenders pulled the plug on credit, prompting the company to apply for court receivership on Aug 31. A preferred bidder for some of its assets is set to be announced Monday.

The Seoul Central District Court, which is overseeing the receivership, plans to name the preferred bidder for Hanjin’s Asia-US operations Monday. Hyundai Merchant Marine Co. and Korea Line Corp., a bulk ship operator, have submitted final bids for the fire sale.

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