Despite being thrown a financial lifeline meant to ensure that stranded cargoes could be unloaded, reports continue to appear describing that many shipments that were en route when Hanjin Shipping declared bankruptcy are stuck at ports and ships are unable to deliver their cargoes.

Substantial cargoes are shipments in letter of credit (L/C) transactions, and the future of those transactions appears uncertain.

Bankruptcy

The world's seventh-largest container shipper sought court receivership in August and agreed additional funding from Korea Development Bank (KDB), Hanjin's lead creditor, its main shareholder Korean Air Lines and Hanjin Group's chairman so that cargoes could be unloaded.

Some US$14 billion of cargo was thought stranded at the time of the Korean shipping giant's collapse.

Nepalese impact

Amongst countries affected by Hanjin's collapse is Nepal. Containers bound for Nepal are stranded at ports around Asia while Hanjin carries almost 20 per cent of the goods imported by Nepalese traders.

Some 400 Nepal-bound containers are stranded at various ports including Singapore and Kolkata.

Importers waiting for goods purchased on L/C terms are reportedly uncertain about when their shipments will be delivered and concerned about obtaining additional credit until their existing L/C obligations have been met and payment is received by the exporter.

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