Hanjin Shipping has revealed plans to wind down its European operations as part of its breakup process initiated by the Seoul Central District Court.
Following the decision to auction the troubled shipowner’s Asia-US business earlier this month, a Hanjin spokeswoman said today that the company would close all its 10 branches in Europe.
This decision will also affect Hanjin’s regional headquarters in Germany, Bloomberg reported.
Demand for Hanjin services on the Asia-Europe route has slumped while other liner companies have stepped in to fill the gaps created by Hanjin’s demise on this trade lane.
The Seoul court is receiving bids for Hanjin’s Asia-US service until the end of this week.
The company is also considering offloading its stake in a terminal in Long Beach, California.
All Hanjin operations could be offloaded through a piecemeal sale organized by the bankruptcy court.
Shares in Hanjin fell as much as 14% to KRW 982 ($0.87) earlier this morning, its lowest intraday price since 27 September.
Hanjin filed for court receivership in late August and saw many of its containerships stranded or arrested at ports worldwide.
