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Hanjin Shipping's alliance membership suspended

Friday, September 2, 2016 - 09:07
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South Korean container shipper Hanjin Shipping Co Ltd said on Friday its membership in the CKYHE shipping alliance has been suspended, adding to the troubles of the country's top shipping firm.

[SEOUL] South Korean container shipper Hanjin Shipping Co Ltd said on Friday its membership in the CKYHE shipping alliance has been suspended, adding to the troubles of the country's top shipping firm.

The firm was notified of the suspension late on Thursday, a Hanjin Shipping spokeswoman said. The alliance includes China Cosco, Yang Ming Marine Transport Corp and Evergreen Marine Corp Taiwan Ltd.

Hanjin filed for court receivership on Wednesday after creditor banks decided to end financial support.

Vessels of the world's seventh-largest container shipper have been seized at Chinese ports in the wake of the firm's collapse. Other Hanjin ships have been denied entry to ports or unable to dock as container lashing firms fret they will not be paid.

Some South Korean manufacturers are looking for alternative shippers, adding to expectations Hanjin will not be able to continue as a going concern and that the court will eventually liquidate its assets.

A Seoul court on Thursday decided to start rehabilitation proceedings for the company, Hanjin said in a separate regulatory filing.

In response, the Korea Exchange said Hanjin's shares would resume trading on Sept 5.

REUTERS