Cargo transport companies in Panama are worried about the debts owed by shipping company Hanjin, which lately declared its bankruptcy.
According to the association of Panamanian cargo transport companies (Atracapa), Hanjin's debt to the Colon cargo companies amount to $120,000, and a quarter of that amount to cargo companies based in Panama City.
The debts arise because of the practice of including port to final destination land transport costs as part of international shipping quotes.
Antonio Garcia Prieto, treasurer at Atracapa, noted that this year shipping companies are taking as long as 90 to 120 days to pay their dues to land transport companies.
Faced with this situation, letters expressing concern have been sent to shipping companies. The latte have excused themselves blaming administrative reason, as many payments are made directly by headquarters and not by their Panamanian subsidiaries.
“We know that in Colon, Hanjin owes $120,000, approximately, to those cargo transport companies that have carried out deliveries to the Colon free zone final clients", Mr. Garcia explained, addin that the shipping company had stated it was going to cover part of transport bills, leaving others potentially unaccounted for.
Transport companies and members of the Panama Maritime Authority (AMP) will discuss this matter this Thursday.
The president of the Maritime Chamber of Panama, Rommel Troetsch, highlighted the importance of understanding the situation, since it affects a number of parties working in and around the Colon Free Zone.
Mr. Troetsch explained that on top of cargo transport companies, port terminal companies are also affected, since they also operate on credit, as do tug companies and surveyors who provide services to shipping companies.
“This is probably the largest bankruptcy in history and as such it will have an impact across the supply chain”, he declared.
For his part, the former president of the maritime chamber of Panama, Juan Carlos Croston, highlighted the effects uncertainty brought about by the bankruptcy of the shipping company.
“Not only do you see service providers being faced with the prospect of not being paid; import businesses that relied on the shipping company also faces uncertainty', Mr. Croston explained.
One main worry for those distribution businesses who are clients of the shipping company concerns the fate of the merchandise they will need to supply stores for the holiday season.
Hanjin relied on port terminals such as Colon container terminal (CTT) and Balboa on the Pacific side.