1. Legal Update: HANJIN BANKRUPTCY AND PORT CONGESTION ISSUES
Health & Personal Care Logistics Conference
Fall 2016

2. Hanjin Bankruptcy Hanjin bankruptcy filing on Aug. 31 in South Korea
Global impact
Intersections between bankruptcy, shipping, and contract laws
US Federal Maritime Commission, and shipper and carrier counsel to comment on the evolving situation and industry impacts

3. Hanjin Bankruptcy FMC background and role
complaints, enforcement, CDRS
FMC guidance issued on Sept. 1
no jurisdiction over creditors’ claims
monitoring to ensure fair business practices
monitoring market impacts
Industry concerns as expressed to FMC
FMC future actions?

4. Hanjin Bankruptcy Issues
What have been the impacts on Hanjin performance?
stranded vessels
vessel arrests
port/terminal refusals to process Hanjin cargo
What have been the impacts on cargo owners?
delays and business interruption
need for alternative transportation
added costs
contractual changes

5. Hanjin Bankruptcy Issues
Ocean carrier alliances
what is an ocean carrier alliance?
are alliances regulated?
Hanjin vessel sharing arrangements?
what have been the impacts on alliance partners?
What are the impacts on ports, terminals, others
lien rights?
refusals to service Hanjin vessels
regulatory and commercial intersections

6. Hanjin Bankruptcy Issues
Multiple bankruptcy proceedings have been filed, can you explain the different proceedings?
How do the bankruptcy proceedings impact contractual performance?
automatic stay
no contract terminations
Where can creditors’ claims be filed?

7. Hanjin Bankruptcy Issues
How can cargo interests gain access to their cargo?
What should cargo owners do to protect their interests?
What will be the impact of Hanjin’s bankruptcy on market rates and capacity?
Over-capacity has been an on-going problem, are more bankruptcies likely?

8. Port Congestion Issues
How has the FMC engaged on the issue of port congestion (i.e. hearings; reports; supply chain teams)?
What authority does the FMC have to address port congestion?
There appear to be multiples factors that contribute to port congestion, i.e. larger vessels, labor, weather, etc.—how can carriers, ports and terminals assist in reducing port congestion?

9. Port Congestion Issues
Are commercial solutions to port congestion likely?
Does port congestion qualify as force majeure and excuse contractual performance?
Should shippers/receivers pay demurrage if port delays are caused by congestion?
Congestion due to the West Coast labor dispute disrupted supply chains, how can shippers/receivers protect themselves in the future?
Has port congestion been improving or getting worse?