Shanghai: Following the disappearance of the entire management of Shanghai Hong Sheng Gang Tai Shipping (HSGT), leaving huge debts behind, some port operators have detained cargo from HSGT ships causing disputes between the ports and cargo owners.
Sinotrans Guangdong Dongjiang Warehouse & Terminal Company, has detained the cargo on HSGT ships as a debt guarantee, and cargo owners are required to pay some form of guarantee for the release of the cargo.
The cargo owners believe the terminal company has no right to detain the cargo, as HSGT doesn’t own the cargo.
“We are both victims, but the terminal only cares about its own benefit,” a cargo owner told local media.
An official from the terminal company said the detention of cargo is within the company’s rights according to a provision in Port Cargo Operation Rules released by the Ministry of Transport.
Currently thousands of containers on HSGT ships have been detained in domestic ports including Shanghai Port, Qingdao Port and Guangzhou Ports.
HSGT has debts of RMB200m ($32m) in total and the management of the company has been missing since February 14.
HSGT is a family business controlled by the Ding family. Ding Genyou, president of the company, formerly a farmer, got rich from the trash recycling business and entered shipping business in 2009.
