Hanjin Shipping will layoff 2,500 shipping crew until the end of January, as part of restructuring and looking for buyer on the Asia-US assets. The first wave of lay-offs will be in beginning of December, when the troubled shipping operator will release 560 people, while another 2,000 will be released in January. Hanjin Shipping is working on selling its intercontinental assets and going ahead with transformation into intra-Asian operator. The laid-off employees will be compensated according to the labor agreements with receiving notifications one month ahead, which was settled into the restructuring plan of the South Korean shipping giant.
According to Korea Ship Owners’ Association and Korea Maritime Institute estimate that more than 100,000 people will lose their jobs in relation with port, ship maintenance, and insurance industry after the bankruptcy of Hanjin Shipping, as 23,000 of them will be in City of Busan.
Hanjin Shipping is the South Korean largest container carrier and one of the world’s top ten carriers in terms of capacity. The company applied for receivership in August 2016.
Hanjin shipping operates 60 liner and tramper services around the globe transporting over 100 million tons of cargo annually. Its fleet consists of some 200 container ships, bulk and LNG carriers. Hanjin Shipping has its own subsidiaries dedicated to ocean transportation and terminal operation and it has 230 branch offices in 60 different countries.