16-09-2016 Stuck on Ship, One Gloomy Hanjin Crew Waits to Learn Its Fate, Wall Street Journal
ON BOARD THE HANJIN ROME—For almost three weeks, two dozen men have been whiling away the hours off the coast of Singapore on a rusty old cargo ship loaded with frozen meat and other goods. They had been headed from South Korea to the Persian Gulf. Now they’re stuck, not allowed to dock or to leave. The crew spends its days tending to the cargo and googling for news on their phones about their ship’s ill-fated owner, Hanjin Shipping Co., which filed for receivership in South Korea last month. Mostly “at ease,” they surf the Web, chat, play cards, go the gym and watch movies—“legally downloaded,” according to the captain, Kwon Do-moon. “Family is worried, but we are in touch,” said one crewman. Their biggest concern: When will they get off the ship, and will there be any jobs left in the industry for them when they do?
Hanjin, one of the world’s largest shipping lines, fell victim to a world-wide capacity glut resulting from the slump in global trade. Creditors have already moved to seize some of its assets. A Singapore court on Aug. 29 granted a provisional request to seize the Hanjin Rome filed by Rickmers, a Hamburg-based company, which says Hanjin owes it money. That means the container ship, with a gross capacity of 65,000 metric tons, is banned from any shipping operations. A security guard has been posted on board to ensure it doesn’t leave. The men aren’t allowed off, unless there is a medical emergency, because the ship can’t dock. Hanjin owes money to the port operator, PSA International Pte. Ltd, as well.
Since Hanjin filed for bankruptcy protection, dozens of its ships carrying more than half a million containers have been denied access to ports because of uncertainty about who would pay docking, unloading and storage bills. As much as $14 billion worth of cargo has been stranded at sea at a time when retailers are stocking up for the Christmas season. The company had 89 cargo vessels—74 container ships and 15 bulk carriers—stranded as of late Wednesday, according to a Hanjin spokeswoman in Seoul.
Capt. Kwon had the guard buy local SIM cards for his crew—10 other South Koreans and 13 Indonesians—so they could call home and keep up with the news. The crew is free to top-up when the cards run out—as long as they can pay for it. No one knows how long they are stuck there. The last they heard from Hanjin headquarters was a greeting for the Korean Thanksgiving holiday, which began Wednesday. “They don’t have enough information,” said Capt. Kwon, a portly, 36-year-old father of twin 8-year-old girls.
Food hasn’t been a problem; supplies were delivered on Aug. 29 and the captain said he was expecting another shipment this weekend, to be paid for with funds the company gave him at the start of the journey. The Korean crew cherishes kimchi and pork, while the Indonesians, who are Muslim, have beef and lamb. To drink, machines turn seawater into fresh water—16 tons to 17 tons every day, he said. “That’s the magic.” They also have bright-blue cans of Pocari Sweat, a Japanese sports drink. The ship has four generators on board and 200 days-worth of fuel. The captain said he expects there will be an end to the stalemate before that runs out, possibly by the end of November.
He has been on board since the ship started its journey from Busan, South Korea, on Aug. 19. It stopped in China before reaching Singapore, from where it was scheduled to go to Malaysia, Sri Lanka, the United Arab Emirates, Iran and Oman before returning. He wouldn’t give much detail on his cargo, aside from saying it included frozen meat and poultry. The crew has special instructions from the Korean office on handling special cargo, he said, without elaborating.
For a reporter’s visit to the ship on Wednesday, organized by three trade unions, crew members were reluctant to speak, but had prepared neatly lettered placards in English and Korean appealing for help. Most had gloomy faces. The youngest was a 22-year old apprentice and the oldest was 53. The union members brought two bags of treats—fried rice, chicken drumsticks and buttercake from a Singapore bistro—and assured the men they were doing everything possible to help them. Two young officers said they worried about finding work again, given the state of the industry. “I don’t know what’s next,” one said. “Maybe I’ll prepare my CV and look for a new job. [We’ve got] enough time.” The officers received their monthly pay last week as usual; the next payday for the seamen is Sept. 20. Under Korean law, Hanjin has to pay them for three months—meaning through November—and three years of retirement benefits, according to the seamen. Hanjin officials weren’t immediately available for comment. Meanwhile, the men are stuck on the rusting Hanjin Rome, which was commissioned in 1998 and is nearing the end of its 20-year lifespan.
Capt. Kwon joined the company in 2000 and like his men is used to life at sea. “Mentally it’s a tough time,” he added. Still, he said he worries more about another Hanjin vessel stalled outside Singapore, which hasn’t been seized but isn’t being allowed into port. “They can’t get any food from the shore,” he said. “If someone’s sick, nobody can help. It can take half a day or one day to contact with coast guard.” He said he hasn’t been able to talk to anyone on that ship. “My colleagues only send emails.”