South Korea’s Hanjin Shipping Co. said it has secured $44.6 million from current and former top executives to relieve the cargo crisis that has roiled the global supply chain.
The announcement came as a second vessel, Hanjin Boston, unloaded Tuesday at the Port of Los Angeles. A third ship, stranded for two weeks off the Southern California coast, was scheduled to arrive Wednesday at the Port of Long Beach.
Hanjin spokeswoman Min Park said the chairman of Hanjin Shipping, Cho Yang-ho, sent 40 billion won ($35.7 million) from his personal assets on Tuesday, and former Chair Choi Eun-young contributed 10 billion won ($8.9 million).
The cash-strapped container shipper will use the money to pay for unloading billions of dollars worth of cargo stranded offshore on its ships. The South Korean company, the world’s seventh largest shipper responsible for 8 percent of U.S. Trans-Pacific trade, filed for bankruptcy protection on Aug. 31.
Park would not say how much money Hanjin needs to resolve the entire cargo crisis, citing business confidentiality.
Hanjin Shipping is still awaiting 60 billion won pledged earlier by parent company Hanjin Group.
The company said 93 of its vessels were stranded offshore across the world as of Sept. 11 after the company couldn’t pay its fuel costs or guarantee dockworkers, crane operators, tugboat captains and others would be paid for their services.
The vessels reportedly contain about $14 billion worth of merchandise.
Four ships — including the Hanjin Montevideo, which is anchored inside the Long Beach breakwater — have been seized by creditors under court orders.
Last week, lawyers for Hanjin said funds had been allocated to unload four vessels, two of which have already docked. A third, the Hanjin Gdynia, was in line to dock Tuesday. Nine more Hanjin vessels remain in U.S. waters.
“Ships are coming in, cargo is being unloaded and goods are making their way to store shelves,” said Noel Hacegaba, chief commercial officer at the Port of Long Beach, where Hanjin holds a majority stake in its largest terminal.