Hanjin Shipping, the world's seventh largest container carrier, filed for bankruptcy two weeks ago, stranding thousands of shipping containers at sea and creating a shortage in the U.S., reported Fortune.
Hanjin's bankruptcy has left $4 billion worth of cargo stuck on more than 100 ships at sea, since many cargo handlers, tug operators and ports are refusing to unload the freight until paid upfront by Hanjin, according to the report.
Some of the 500,000 containers Hanjin was transporting were unloaded in ports on the West Coast. However, terminal operators are not taking back the empty containers, causing a large amount of abandoned containers to clog up ports and truck yards, the report states.
"If it's not fixed in the next couple of weeks, I think you'll see a huge ripple effect across the industry," said Weston LaBar, executive director for the Harbor Trucking Association in Long Beach, Calif.
Other shipping executives said they were more worried about a shortage of trailers, as many are tied up holding Hanjin's empty containers. According to Mr. LaBar, thousands of Hanjin's containers — resting on trailers — are out of circulation.
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