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Business

Cash injection won't come close to saving Hanjin

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Business

Cash injection won't come close to saving Hanjin

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COMING UP:Cash injection won't come close to saving Hanjin

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00:00:00
>> And comprehensive logistics company.>> Big-time bailouts can't keep South Korean shipping giant Hanjin from sinking. Ports from Sydney to Hamburg refusing to let many of its vessels dock after the company filed for bankruptcy last week. Leaving huge amounts of stranded cargo and global trade networks in chaos.
00:00:18
On Tuesday the company announced a funding plan including a big cash injection from the government. But as Reuters' Tony Monroe explains, it won't be nearly enough.>> The government is considering putting in about $90 million worth of loans, Hanjin's parent is putting in another $90 million. But that is really far short of what they need when you consider that Hanjin Shipping has about $550 million in unpaid bills and also has about $5 billion in debt.
00:00:44
So this funding would help in getting some of this cargo unloaded from ships, but it is not enough to throw the shipping line the lifeline that it would need.>> It looks like the money put up for Hanjin may be just enough to cover stranded merchandise, and there's a lot of it.
00:01:02
>> More than 70 Hanjin ships have been blocked from entering ports or have been seized. Now that's more than half its fleet, so we're talking billions of dollars worth of cargo. That includes Items like textiles or TV sets headed for the U.S. ahead of the Christmas holidays. It even includes 50 containers' worth of components for a nuclear power plant that's under construction in the United Arab Emirates, so it's a lot of cargo.
00:01:29
>> Many Hanjin crews are just floating outside ports around the world. One captain drifting near Tokyo tells Reuters his ship has a month's worth of food left. He and his crew eating through supplies as they watch the news awaiting to learn their fate.