×

POLICY QUOTATION FORM

Please fill out this form and we will get back to you as soon as possible!

SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

CREATE AN ACCOUNT FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!

CREATE ACCOUNT

ALREADY HAVE AN ACCOUNT?
QUESTIONS? CALL: +1-888-3698790
  • LOGIN
  • GET A QUOTE

IciCoverage New Site

  • HOME
  • ABOUT US
  • PRODUCTS & SERVICES
  • FAQ
  • BLOG
  • CONTACT US
  • Home
  • Blog
  • What you don’t know about Hanjin Shipping bankruptcy insurance implications
26 February, 2021

BLOG & Gossip

What you don’t know about Hanjin Shipping bankruptcy insurance implications

by Desiree Colmenares / Wednesday, 14 September 2016 / Published in Blog

Two weeks ago, South Korean carrier Hanjin Shipping filed for court receivership, creating chaos in the shipping industry and affecting port’s operations, cargo owners, and supply chain companies.

Currently, about 60 of Hanjin Shipping’s cargo vessels are stranded at sea and some ships have been arrested. Cargo owners are at the most risk of suffering losses.

Currently, an estimated of 530,000 containers are caught up in Hanjin’s network with a total value of $14 billion. The biggest risk is that many of these goods might not arrive at its final destinations.

Depending on the delay, there are other consequences for all parties involved. Crawford and Company give some examples: “Non-deliveries, production stops and interruption of wholesale and retail businesses. Temperature sensitive and perishable cargo might also be affected along with additional costs incurred for handling, trans/re-shipping and forwarding to destination”.

Hanjin’s financial difficulties could lead to hundreds of insurance claims that according to insurance law firm Rubin, Fiorella and Friedman (New York) might extend for more than a year.

The cargo owner could claim for damages if the market value of the cargo goes down between the date the cargo should have been delivered and the date it is actually delivered.

International Law Firm Ince&Co indicates that even an “All Risks” coverage for cargo won´t protect the owner suffering loss. “Clause 4.6 of the ICC(A) stipulates that in no case shall the insurance cover “loss damage or expense arising from insolvency or financial default of the owners managers, charterers or operators of the vessel”. Cargo owners may find themselves in a situation where they are unable to make insurance claims on their marine cargo policies should the cargo on board Hanjin vessels be damaged or lost as a result of what could potentially be a protracted delay,” the firm says.

According to a briefing published by insurance broker Marsh, the effects of Hanjin Shipping bankruptcy on marine insurance are uncertain:

 “There is now considerable concern throughout the industry as to whether or not companies are insured against this scenario. Marine cargo insurance policies are written on a wide variety of terms and conditions, for which there are going to be very different answers on a ‘case-by-case’ basis,” said Marcus Baker, chairman of Marsh’s global marine practice.

Sources:

http://splash247.com/marsh-forecasts-lower-charter-rates-wake-hanjin-demise/

http://www.salon.com/2016/09/12/that-sinking-feeling-why-the-bankruptcy-of-shipping-giant-hanjin-has-so-many-companies-worried/

http://us.crawfordandcompany.com/media/2126818/09-01-16-market-update-hanjin-shipping-facing-insolvency.pdf

http://www.incelaw.com/en/documents/pdf-library/shipping/hanjin-insolvency-newsflash-cn.pdf

 

 

0

About Desiree Colmenares

What you can read next

Why your business needs a LinkedIn profile
Maersk Line’s new Triple-E vessels could be bigger than we thought
3 Useful Apps for exporters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Cargo Insurance

    Cargo insurance basics: What is it? Do you need it?

    Every day, cargo valued in billions of dollars ...
  • Allianz starts ambitious climate change protection plan

    The Allianz Group is significantly expanding it...
  • Why is cargo insurance important: The Maersk Honam case

    By law, all shipping carriers are forced to off...
  • Robotics in the insurance industry: The Brightside case

    Robotics in the insurance industry is starting ...
  • Allianz Lanka is created after Allianz’ acquisition of Sri Lankan general insurance unit

    Allianz announced the creation of Allianz Insur...

ICI Twitter
icicoverageInternational Container Insurance@icicoverage·
14h

Simulation and training solutions specialist Wärtsilä Voyage has teamed up with rapidly growing Ocean Technologies Group (OTG) to offer a new level of smart learning technologies.
By @Splash_247
https://t.co/cGuvRoxd0P

Reply on TwitterRetweet on Twitter1Like on TwitterTwitter
icicoverageInternational Container Insurance@icicoverage·
15h

Cosco Shipping Specialized Carriers, a unit of Cosco Shipping Group, has announced plans to set up a joint venture with SAIC Anji Logistics, the shipping subsidiary of car maker SAIC Motor.
By @Splash_247
https://t.co/a0PYIN72cR

Reply on TwitterRetweet on Twitter1Like on TwitterTwitter
icicoverageInternational Container Insurance@icicoverage·
18h

Supramax rates have sky rocketed by more than 40% in the last week, crossing the $20,000 a day mark for the first time in a decade while handysizes have recorded 31 consecutive days of improving rates.
By @Splash_247
https://t.co/8B1vl40QZs

Reply on TwitterRetweet on Twitter2Like on Twitter2Twitter
icicoverageInternational Container Insurance@icicoverage·
21h

Sales efforts by industry heavyweight Cido Shipping are filling broker reports across the globe as it cuts its exposure to dry in two.
By @Splash_247
https://t.co/QzXf6n0e8B

Reply on TwitterRetweet on Twitter2Like on Twitter1Twitter
icicoverageInternational Container Insurance@icicoverage·
24h

DEME Offshore has been awarded a contract by Belgium’s Parkwind for the engineering, procurement, construction and installation (EPCI) of the foundations at the Arcadis Ost I offshore wind farm.
By @Splash_247
https://t.co/39CAUtRsG7

Reply on TwitterRetweet on Twitter1Like on TwitterTwitter
Load More...

ICI Facebook

Unable to display Facebook posts.
Show error

Error: The user must be an administrator, editor, or moderator of the page in order to impersonate it. If the page business requires Two Factor Authentication, the user also needs to enable Two Factor Authentication.
Type: OAuthException
Code: 190
Subcode: 492
Please refer to our Error Message Reference.

Navigation

  • Home
  • About Us
  • Products & Services
  • FAQ
  • Press
  • Blog
  • Contact Us

NEWSLETTER SIGNUP

By subscribing to our mailing list you will always be update with the latest news from us.

INTERNATIONAL CONTAINER INSURANCE

Fidelis Management Inc., P.O. Box 711 Juris Building
Main Street, Charlestown, Nevis.

PHONE NUMBERS

  • +1-888-3698790
  • Home
  • About Us
  • Products & Services
  • FAQ
  • Press
  • Blog
  • Contact Us
  • GET SOCIAL
IciCoverage New Site

© 2017 All rights reserved. International Container Insurance.

TOP