Executive Briefings

Retail Group Wants U.S. Government to Help Solve Problems in Wake of Hanjin Bankruptcy

The recent bankruptcy of South Korean ocean carrier Hanjin Shipping is causing "widespread disruptions" to supply chains across the country, according to the National Retail Federation, which wants the U.S. government to step in.

NRF, along with the Hardwood Federation and a coalition of 120 retail, manufacturing and agriculture groups, sent a letter to U.S. Secretary of Commerce Penny Pritzker this week asking the department to continue to work towards a resolution to the ongoing issues surrounding Hanjin's insolvency.

The groups detailed a variety of concerns, including ongoing confusion about the location of cargo, as well as where it will eventually be unloaded, whether shippers' goods could be seized by creditors, and if Hanjin's vessels could be seized once they enter a port.

The coalition noted that shippers and beneficial cargo owners are also facing higher fees to rescue their cargo from terminals and increasing freight charges from competing carriers as they attempt to book space elsewhere.

"U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year," the group wrote. "The recent bankruptcy filing has caused widespread disruptions in freight shipments worldwide."

Read Full Article

NRF, along with the Hardwood Federation and a coalition of 120 retail, manufacturing and agriculture groups, sent a letter to U.S. Secretary of Commerce Penny Pritzker this week asking the department to continue to work towards a resolution to the ongoing issues surrounding Hanjin's insolvency.

The groups detailed a variety of concerns, including ongoing confusion about the location of cargo, as well as where it will eventually be unloaded, whether shippers' goods could be seized by creditors, and if Hanjin's vessels could be seized once they enter a port.

The coalition noted that shippers and beneficial cargo owners are also facing higher fees to rescue their cargo from terminals and increasing freight charges from competing carriers as they attempt to book space elsewhere.

"U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year," the group wrote. "The recent bankruptcy filing has caused widespread disruptions in freight shipments worldwide."

Read Full Article