Update: US Christmas sales could be hit by Hanjin Shipping crisis
The ongoing South Korean Hanjin Shipping bankruptcy crisis could impact Christmas sales, including Black Friday. Hanjin handles around 8% of all US cargo, however, as we covered previously, its assets have been frozen and its ships are not being allowed to unload or take on more cargo - over $14bn is stranded - which is causing a knock-on effect that will hit retailers' shelves come the Christmas holiday season. On another note, Hanjin's bankruptcy has put into the spotlight South Korea's "chaebols" (family-controlled conglomerates), who are facing increasing difficulty with not only Hanjin, but also Lotte and Samsung, amongst others. Crises at these three companies have revived the long-standing debate as to whether they are nowadays fit for purpose, says the BBC.
Mike Snider

USA TODAY

The woes of a South Korean shipper could affect what makes it under Christmas trees this holiday.

Troubled South Korean firm Hanjin Shipping, the world's seventh-largest shipper, has been granted temporary bankruptcy protection in the U.S. The company filed for bankruptcy protection in South Korea last week and is seeking similar status in dozens of countries globally to prevent seizures of ships and cargo.

With its assets frozen, Hanjin, which handles about 8% of all U.S. cargo, is faced with its ships not being allowed to unload or take on cargo as dock workers and tugboat pilots are concerned about not being paid.

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The crisis for the shipper is creating "a ripple effect" that could impact retailers' shelves come the crucial holiday shopping season. Tech giant Samsung is among the companies affected with about $24.5 million in visual display products and parts and $13.5 million in refrigerators and other appliances on two ships near Long Beach.

Delays, replacement shipments and other costs will hurt not only Samsung, but also U.S. retailers and consumers, Jun Tae Ahn, chief financial officer for Samsung Electronics' visual display business division, said in a filing in bankruptcy court. "The upcoming months are critically important to retailers, particularly ahead of Black Friday and the holiday shopping season," the filing said.

Members of Congress and U.S. retailers have also sought support for Hanjin to temper the repercussions of the shipper's dilemma.

"We are entering peak season — when the entire shipping industry must work together to get gifts on shelves for holiday shoppers — our priority should be getting these ships unloaded," several U.S. House members of the Congressional Ports Caucus urged Secretary of Commerce Penny Pritzker on Tuesday in a letter of their own. Many of the caucus members represent the Long Beach and Los Angeles ports affected by the Hanjin situation.

"U.S. bound cargo is already being delayed at origin ports and Hanjin ships loaded with cargo idle unable to enter U.S. ports, containers are being detained on arrival clogging already congested ports and preventing merchandise from reaching store shelves," Retail Industry Leaders Association President Sandra Kennedy said in the letter last week to Pritzker and Federal Maritime Commission Chairman Mario Cordero.

The Associated Press contributed to this report.

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