Lessons from Hanjin Shipping's collapse

• Main Author: Zhang, Jia Xi
• Other Authors: Teh Kong Leong
• Format: Final Year Project
• Language: English
• Published: 2018
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/76308
• Institution: Nanyang Technological University

This paper looked into the stranded seafarers issue during the bankruptcy of Hanjin Shipping (Hanjin), with analyses on effectiveness of practical measures taken. Among all stakeholders affected by the fall of giant shipping line, seafarers who carrying out ocean carriage from points to points were no doubt one of the biggest victims out of the demise. Most of Hanjin seafarers working on board were cut off by the owner and left stranded away from shore for months. In this research, a detailed description of the problems that ship crews encountered back then, and how they were resolved was presented. At first, an extensive literature review was conducted for comprehensive understanding of the research company and international regulation regime. From which the research basis was established. Through the adoption of Mini-Delphi Method, views and insights from industry professionals were consolidated for detailed investigations. Finally, combining the literature review and interview responses, the report investigated and analyzed the findings. Four propositions were discussed with the objective to up standard international shipping regulations concerning human element of seafaring. It is recommended for nations to enforce relevant laws which require ship owners to show due care to crewmembers in any aspects. In case of shipping bankruptcies, emergency funds should be set up by governmental sectors or in collaboration with labor unions. The whole industry should be aware that seafarers are the most valuable assets for any shipping activities. Unfortunately, they are always the least to be taken care of in the current profit-driven society. One key lesson that the industry should learn from the Hanjin chapter, is how to effectively address the issue of seafarers that are left stranded when the owner is busy with bankruptcy proceedings and fighting over assets. With the needs of seafarers being properly addressed, the whole industry will be benefitted with improved productivity and effectiveness.