‘We’ll not entertain the rate reduction’: Gerry Wang remains firm on Hanjin charters

‘We’ll not entertain the rate reduction’: Gerry Wang remains firm on Hanjin charters

Gerry Wang, the head of Seaspan Corp, has firmly reiterated his stance that he will not budge in charter renegotiations with South Korea’s Hanjin Shipping.

Creditors have demanded Hanjin Shipping cuts its fees of its chartered in fleet as part of its large restructuring process. Seaspan has seven 10,000 teu ships on charter to South Korea’s largest shipping line.

Speaking at Seaspan’s interims yesterday, Wang said: “We’ve made it very clear. We’ll not entertain the rate reduction.” Wang said his company had never renegotiated charter contracts. The chairman of Hanjin Group had held talks with Wang to discuss the matter last month, but came home without being able to strike a deal.

Speaking with Splash last month, Wang said: “I hope the Korean government is fully aware that this is not just a Hanjin Shipping issue – it is concerning their shipbuilding industry, their exports, their national shipping lines, their reputation as law-abiding OECD country.”

Hanjin’s creditors are expected to give the line an extra month through to early September to get its restructuring in place. The threat of court receivership looms over the line if it is unable to strike deals with Seaspan and other tonnage providers.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Avatar
    Andrew Craig-Bennett
    July 27, 2016 at 3:28 pm

    Big words.

    But does the willingness and/or the ability of a shipping line to pay charter hire affect the “…the reputation as a law-abiding OECD country” of the state in which it is domiciled?