Hanjin Shipping was the 7th largest carrier — then bankruptcy left ships stranded at sea

Hanjin Shipping was founded in 1977 as part of the Hanjin Group, a South Korean conglomerate that started as a trucking company in 1945. It grew to become South Korea's largest container line and the world's seventh-largest container carrier. The company expanded aggressively, ordering 250,000 TEU of new ships from 2008 on the eve of the Great Recession. Although some orders were cancelled, seven ships were delivered between 2010 and 2013, doubling the company's debt to $8 billion.

Container shipping rates continued to fall. In April 2016, Hanjin applied to creditors for debt restructuring, but creditors withdrew support in August 2016 after deeming the parent company's funding plan inadequate. Hanjin filed for receivership at the Seoul Central District Court on August 31, 2016, requesting a freeze on its assets. The news triggered chaos: Hanjin vessels were denied access at ports worldwide because service providers feared they would not be paid. Cargo ships were stranded at sea, unable to dock, and cargo was seized by creditors.

Hanjin filed for U.S. bankruptcy protection on September 2, 2016 to allow its vessels to dock without seizure. South Korean courts declared the company bankrupt on February 17, 2017, and a trustee was appointed to liquidate assets. SM Line purchased five vessels and two terminals. Total debt was $10.5 billion, but only $220 million in assets were recovered — just 2% of what was owed. The bankruptcy caused the largest disruption in container shipping history, stranding holiday inventory for retailers including Nike.