Freight Transport

Hanjin has issued a statement to clarify the situation regarding the recent arrest of its containers in the US

In 2001, Hanjin and Unitas entered into contract to lease 5,900 containers for eight years With production financed by SMBC, Hanjin's obligation was to purchase those containers by paying the balloon payment of the contractually agreed amount on the 32nd instalment

However, when Hanjin intended to make this payment, Unitas claimed that the balloon payment was only part of the lease payment and that they were not obliged to hand ownership over to Hanjin Unitas argued that if Hanjin wanted to purchase the containers, then the balloon payment should be paid once more

This, says Hanjin, is contrary to the contract Since Unitas intentionally violated the contract, Hanjin raised litigation against Unitas in England in October 2009 over the ownership of the containers and compensation of the damages caused by Unitas' actions Hanjin's damage claims amount to US$11million

Concerned that Hanjin's payment for those containers might not reach SMBC, Hanjin and SMBC discussed the possibility of direct payment However, this failed due to serious objection raised by Unitas And as the contract between Unitas and SMBC defaulted, SMBC exercised its mortgage rights and arrested the containers

Hanjin asserts that this matter has nothing to do with the company's financial status; it is a contractual dispute between Hanjin, Unitas and SMBC

Hanjin added that, despite the ongoing lawsuits, the company will work closely with all parties to settle the dispute