General Information for Cargo Interests
Hanjin Shipping Company (Hanjin), the seventh largest container shipping company in the world, has recently filed for bankruptcy protection. Given the bankruptcy filing, Hanjin has had some of its vessels arrested and assets frozen, disrupting the supply chain of many organisations. Ships currently at sea with cargo aboard may not be allowed into port and ships already docked may not be able to discharge cargo.
This situation will likely result in cargo interests (buyer and sellers of goods) to incur delays and potentially additional costs in respect to the transport of the cargo.
Cargo policies will generally continue to cover physical loss or damage during this type of delay and in certain circumstances will cover some limited additional costs.
Individual policies will vary in how they will respond to the various losses that may arise from this event.
We recommend that you contact your account handler at Lockton if you are aware that you may be affected by this event and we can then review and assist you should there be an insurable loss.