You are using an older browser version. Please use a supported version for the best MSN experience.

Hanjin Shipping shares dives at bancruptcy

AAP logoAAP 5/09/2016

Shares of South Korea's largest shipping company, Hanjin Shipping, have suffered a sharp drop at the Seoul Stock Exchange due to the delicate situation of the company, whose vessels have lost access to international ports after the company declared suspension of payments.

The world's seventh-largest shipping company shares opened 29.84 per cent lower at the beginning of the trading session, but later partially recovered.

On Sept. 2 Hanjin filed for bankruptcy protection at a court in the US.

The recovery came after the South Korean government announced it will extend financial support for Hanjin Shipping's contractors.

The company has a total of 457 contractors and they combined are owed some 64 billion won ($A75 million.)

South Korea's Financial Services Commission (FSC) took this decision to prevent the shipping crisis from affecting exports, the main engine of South Korea's economic growth.

A total of 45 ships are stranded in waters around the world carrying various consignments on board after they were denied access to several ports for lack of liquidity.

The Ministry of Oceans and Fisheries on Sunday created a working group with other government agencies and other companies to solve the situation.

Hanjin Shipping is among the world's 10 largest maritime transport firms and sends shipments to more than 90 major ports and 6000 destinations worldwide - including the United States, Spain and eleven Latin American countries.

The shipping company on Thursday, following its own petition, was put under judicial administration and currently all its assets remain frozen.

image beaconimage beaconimage beacon