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Business

Why Kimchi is bobbing off the California coast

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Business

Why Kimchi is bobbing off the California coast

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COMING UP:Why Kimchi is bobbing off the California coast

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00:00:01
>> 80 tons of spicy kimchi is bobbing off the coast of California and at risk of going sour. That's a sliver of a growing problem of pileups at U.S. ports after the South Korean shipping firm, Hanjin, went belly up last week. Ports around the world fearing they won't be paid for docking and unloading, are rejecting some ships.
00:00:21
In other cases, concern the goods could be seized by creditors is keeping vessels floating nearby waiting for orders on their next moves. Some Hanjin vessels are stuck in southern California and it's having a knock-on effect further north says Reuters bankruptcy reporter Jim Christie in San Francisco.>> Just over my shoulder you can see the Port of Oakland, California.
00:00:43
There are about 200 Hanjin shipping containers there that have been held in limbo since the company filed for bankruptcy. Normally Hanjin ships that first visit southern California come to the Port of Oakland. So currently the Port of Oakland is just waiting to see really what happens with developments in southern California.
00:00:59
>> Around $14 billion worth of cargo is stranded like this globally during a period that's critical to moving goods for the big pre-holiday shopping season. Some cargo shippers have forked out thousands of dollars in fees to terminal owners and truckers to reclaim their goods from Hanjin ships. The South Korean government has stepped in and plans to send over 20 substitute container ships to the U.S., Europe, and Southeast Asia to help contain the fallout.
00:01:27
As for the kimchi off of California, it's destined for Costco and other retailers but it can spoil in days and then would all have to be tossed out.