McGuireWoods partner Jim Van Horn commented in a Sept. 23 Bloomberg article about the financial implications that Hanjin Shipping’s bankruptcy is having on retailers seeking to unload goods stranded aboard Hanjin’s vessels.
In the article, Van Horn said even though creditor protections granted to the South Korean container carrier by the U.S. courts should have helped it steer clear of problems in the ports, “logistical problems have persisted and economic repercussions are likely.”
Van Horn, a bankruptcy lawyer in McGuireWoods’ Baltimore office, estimates the cost of shipping goods from Asia to the United States has nearly doubled as a result of Hanjin’s recent bankruptcy. He also said retailers will likely experience a shortened holiday season due to shipping delays.
“I don’t see a scenario where there isn’t a minimally shortened holiday retail season, and I see the potential for a very shortened retail season,” Van Horn said in the article.
The full text of the Bloomberg article, “Hanjin Clients Report Price-Gouging and Container Pileups,” is available online.