On Thursday 8 September our global marine team held a conference in Tokyo on various trends and issues facing the industry. As part of this conference the team presented an update on the Hanjin Shipping situation as outlined below.
Summary of recent developments:
1. The fact that the order has now been recognised in the UK will have a broad impact internationally.
2. The fact that secured claims might still proceed in the UK despite the order, because the security responds, not Hanjin's assets.
3. It is important for anyone in a charterparty chain or cargo interests to properly analyse lien situations.
4. Lack of recognition of foreign bankruptcy orders in the Middle East means there is a potential free-for-all on arrests of Hanjin vessels if calling into ports in the region, because they won't benefit from court protection. However, thus far there has been limited exposure for Middle East businesses ?to Hanjin.
Learn the safety lessons from Hanjin by asking yourself 'what if?'
1. Would your emergency protocol work for crew health and safety if whole fleets could not come to port? Would there be sufficient food and water for crews?
2. Are there safety impacts associated with supply chain ripple effects? Is any cargo in the category of safety critical goods and equipment? Will the cargo delay impact on the health and safety of people? If so, how can alternative arrangements be made?
3. Business continuity plans and emergency protocols that have action plans to manage these issues are crucial.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.