Hanjin Cuts Fleet as Court Advises Return of Chartered Ships
- Return makes sense as vessels chartered at high rates: Court
- Hanjin already sent back four box movers, three bulk carriers
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Hanjin Shipping Co., the South Korean container line that sought bankruptcy protection last month, received a court advisory to return all chartered vessels to cut costs while the company is in the midst of reducing its fleet.
Giving the ships back to the owners makes sense as they were chartered at high rates, a spokesman at the Seoul Central District Court said Monday, declining to be identified in accordance with court practices. Hanjin estimates it may face penalties of about $1.7 billion for the early return, but the contracts could be renegotiated if the company is revived, the spokesman said. A Hanjin representative declined to comment.