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Hanjin's debts cast a bad light on South Korea: Gerry Wang
HONG KONG's Gerry Wang, the Seaspan CEO, warned the South Korean government that its otherwise sound reputation is at risk because of Hanjin Shipping's enormous debt load, and its begging for charter rate reductions.
Mr Wang, who is the world's biggest non-operating owner of containerships, said the company would not entertain the idea of reduced hire fees.
"We believe that is the violation of contract in the spirit of a major OECD country having US$1.5 trillion of GDP with almost 50 per cent derived from exports. That is not a good action. We do not support that.
"We have never had such situation with any of our other customers, Hanjin shipping has been the only one. They will soon realise honouring contractual obligations at the international stage is very important practice they need to follow in order to be internationally reputable.
"I believe South Korea has become a powerhouse in the world. And I believe, and I hope, Hanjin Shipping handling will be conducted accordingly," said Mr Wang.
Hanjin still owes Seaspan $11.6 million for three 10,100-TEUers on 10-year charters, the London's Loadstar reported.
Hanjin also charters four 10,100-TEU ships from Greater China Intermodal Investments (GCI), a Marshall Islands-based investment vehicle set up by Seaspan and two other investors, and is also in breach of those charter parties for late payment.
Seaspan said Hanjin had been making payments, but they continued to run around 90 days late for all seven ships, fixed in 2014 at $43,000 per day.
Mr Wang confirmed that he had held discussions with Hanjin, also on behalf of GCI, but had "firmly" declined the offer of equity in a restructured Hanjin in exchange for a three-and-a-half-year reduction to charter rates.
However, there was still an open dialogue between Seaspan and Hanjin, and commented optimistically that "we believe our Korean friends will eventually become more rational".
Meanwhile, Hanjin is still to negotiate reductions in charter hire rates with 22 container and bulk shipowners, as part of the terms of its creditor restructure. These discussions began in May but so far have made little progress.
There was no response from Hanjin to a request for comment.
Mr Wang, who is the world's biggest non-operating owner of containerships, said the company would not entertain the idea of reduced hire fees.
"We believe that is the violation of contract in the spirit of a major OECD country having US$1.5 trillion of GDP with almost 50 per cent derived from exports. That is not a good action. We do not support that.
"We have never had such situation with any of our other customers, Hanjin shipping has been the only one. They will soon realise honouring contractual obligations at the international stage is very important practice they need to follow in order to be internationally reputable.
"I believe South Korea has become a powerhouse in the world. And I believe, and I hope, Hanjin Shipping handling will be conducted accordingly," said Mr Wang.
Hanjin still owes Seaspan $11.6 million for three 10,100-TEUers on 10-year charters, the London's Loadstar reported.
Hanjin also charters four 10,100-TEU ships from Greater China Intermodal Investments (GCI), a Marshall Islands-based investment vehicle set up by Seaspan and two other investors, and is also in breach of those charter parties for late payment.
Seaspan said Hanjin had been making payments, but they continued to run around 90 days late for all seven ships, fixed in 2014 at $43,000 per day.
Mr Wang confirmed that he had held discussions with Hanjin, also on behalf of GCI, but had "firmly" declined the offer of equity in a restructured Hanjin in exchange for a three-and-a-half-year reduction to charter rates.
However, there was still an open dialogue between Seaspan and Hanjin, and commented optimistically that "we believe our Korean friends will eventually become more rational".
Meanwhile, Hanjin is still to negotiate reductions in charter hire rates with 22 container and bulk shipowners, as part of the terms of its creditor restructure. These discussions began in May but so far have made little progress.
There was no response from Hanjin to a request for comment.
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