Charter Rates Remained Stable in Hanjin

Seaspan Corp chief Gerry Wang says it will “not entertain” a cut in charter rates for struggling South Korean container line Hanjin Shipping.

News ID: 67835

Date: 03 August 2016 - 10:27

Hanjin approached Seaspan in May seeking reduction in rates it has on long-term charter at $43,000 per day. Seaspan declined an offer of shares in Hanjin in exchange for a charter rate cut over three and half years, MANA correspondent reported.

Speaking during Seaspan’s half year earnings call Wang stated: “We've made it very clear. We'll not entertain the rate reduction.

“We have never had such situation before with any of our other customers and Hanjin Shipping has been the only one.”

Wang believes that while situation with Hanjin is very fluid that it will in the end honour its charter obligations.

“But we believe our Korean friends, the Korean government and the shareholders there and Hanjin Shipping will become more rational. They will soon realise honouring contractual obligations at the international stage is very important practice.”

It's worth saying that, as of 30 June Hanjin had $11.6m in outstanding charter payments to Seaspan.