Hanjin trims fleet as court advises return of chartered ships

Seoul

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 on Monday, declining to be identified in accordance with court practices. Hanjin estimates that it may face penalties of about US$1.7 billion for the early return, but the contracts could be renegotiated if the company is revived, the spokesman said. Hanjin declined to comment on the court's recommendation.