Marsh’s latest Adviser, Shipping Industry Vulnerable following Hanjin Administration, examines the far-reaching risk and insurance implications of shipping company Hanjin’s administration filing on the increasingly interdependent global shipping industry.
In the report, we look at those who are likely to immediately feel the effects, including:
- The owners of cargoes entrusted to the care of Hanjin.
- Terminals and ports to which Hanjin vessels were scheduled to visit.
- Shipowners who have leased their ships to Hanjin under charterparty agreements.
- Depending on their contracts freight forwarders, who may face financial penalties.
Marcus Baker, Chairman, Global Marine Practice, Marsh, said: “The wider ramifications of such an important company failure are only beginning to unfold. The situation is particularly acute, as August to October is generally the busiest time of the year for the shipping industry, as companies stock up for the holiday season.
“There is now considerable concern throughout the industry as to whether or not companies are insured against this scenario. Marine cargo insurance policies are written on a wide variety of terms and conditions, for which there are going to be very different answers on a “case-by-case” basis.”