Out 24, 2016

Hanjin shares dive on plans to row back European business

A Hanjin cargo ship in California. The global shipping giant is the first casualty of a global downturn in the market


Shares in Hanjin tumbled nearly 12pc in morning trading after the embattled South Korean shipper said it would shut most of its European business.

The firm, once the world's seventh-largest shipping company, will close 10 bases on the continent including its European headquarters in Germany, as well as offices in Spain, Hungary, Holland, France, the Czech Republic and Belgium, as it struggles to contend with a multi-billion-dollar debt pile.

Hanjin says its UK offices in London, Manchester and Felixstowe will remain open.

The company, part of the South Korean conglomerate that also owns Korean Air, the national carrier, has filed for bankruptcy in its home market and the US after it lost the support of banks to repay its £5.37bn debts. Hanjin's vessels are now been seized by authorities and creditors, with others refused entry to ports.

By Telegraph Reporters
24 October 2016