Hanjin’s bankruptcy has left $4 billion worth of cargo stuck on more than 100 ships at sea, since many cargo handlers, tug operators and ports are refusing to unload the freight until paid upfront by Hanjin, according to the report.
Some of the 500,000 containers Hanjin was transporting were unloaded in ports on the West Coast. However, terminal operators are not taking back the empty containers, causing a large amount of abandoned containers to clog up ports and truck yards, the report states.
“If it’s not fixed in the next couple of weeks, I think you’ll see a huge ripple effect across the industry,” said Weston LaBar, executive director for the Harbor Trucking Association in Long Beach, Calif.
Other shipping executives said they were more worried about a shortage of trailers, as many are tied up holding Hanjin’s empty containers. According to Mr. LaBar, thousands of Hanjin’s containers — resting on trailers — are out of circulation.
More articles on supply chain:
Study: Supply chain execs more likely to exhibit psychopathic traits
Indiana Blood Center pleads for O-negative donations
Regional Health wins supply chain performance award
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
