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Business

South Korean container giant Hanjin collapses

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Opening sequence

Business

South Korean container giant Hanjin collapses

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COMING UP:South Korean container giant Hanjin collapses

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Transcript

00:00:01
>> Big ships, fast cranes, carrying the world's export trade. A schoolboy's dream, but that dream turning sour for Hanjin, as its ships grind to a halt. Its shares suspended since plunging 24% after its banks withdrew support and it filed for court receivership. 44 out of 98 container ships of the world's seventh biggest container shipper now denied access to ports worldwide.
00:00:24
>> It's bad news for the company, clearly. It's bad news for those that've involved their supply chains with this shipping organization. So that's potentially some challenges for some of those South Korean exporters. And I think it is just implicit in terms of the slower rate of global growth that we're now having to become accustomed to compared to the pre-crisis period.
00:00:46
>> This is an emergency meeting by the shipping minister in South Korea, but the emergency is as much elsewhere. Reports suggest ten ships have already been seized by creditors. Firms in the US are launching legal action to do more of the same over unpaid bills. And US retailers are calling on their government to take steps to minimize disruption.
00:01:05
But with ships spread from Sydney to Hamburg, that won't happen quickly.>> It could certainly provide plenty of disruption in the run up to Christmas. It does come at an awkward time, really. And I think you could start to see the effects being felt in the economic data around the globe if the shipping schedule falls behind.
00:01:22
>> Container shipping is a sector saddled with big debts and overcapacity. Analysts ask whether more global waves are yet to come from this crisis, if fewer perhaps from the ships at the center of it.