By Rishaad Salamat and also Kyunghee Park

(Bloomberg)–The autumn of South Korea’s greatest container lineHanjin Shipping Co resembles the 2008 collapse ofLehman Brothers Holdings Inc and also has actually materially influenced the delivery market,Seaspan Corp Chief Executive Officer Gerry Wang claimed.

Seaspan, the Hong Kong- based container-ship renting business that has actually 3 vessels hired to the troubled line, is assessing all choices and also taking a look at systemic threats arising from Hanjin’s personal bankruptcy declaring, Wang claimed in a meeting withBloomberg Television In June, Wang had actually turned down Hanjin’s ask for charter-rate cuts prior to the delivery line declared court receivership last month.

“The fallout of Hanjin Shipping is like Lehman Brothers to the financial markets,” Wang claimed. “It’s a huge, huge nuclear bomb. It shakes up the supply chain, the cornerstone of globalization.”

With concerning 93 ships, consisting of 79 container vessels, stranded at 51 ports in 26 nations, the gridlock at Hanjin has actually interrupted international supply chains throughout “peak season” when shops in the united state stockpile prior to the year’s busiest vacation buying period. The proprietor and also Hanjin’s moms and dad remain in the procedure of infusing funds to aid the beleaguered business unloaded freight stuck aboard lots of ships and also damage the deadlock.

The influence on Seaspan has actually been tiny, Wang claimed, including he is seeing a “silver lining” as products prices boost in the short-term. The vessels he has actually rented to various other carriers are greater than 90 percent complete in advance of the holiday, he claimed. Seaspan has a running fleet of concerning 90 vessels.

“There’s a tremendous flight to safety,” he claimed. “Freight rates have shot up like crazy over the short term, the long term I don’t know. But one thing’s for sure: This fallout will help demand and supply.”

Hanjin Chairman Cho Yang Ho finished instilling 40 billion won ($ 36 million) to aid the tottering system, 3 days after team associate Korean Air Lines Co., the greatest investor, accepted pumping 60 billion won. A previous chairwoman of Hanjin Shipping promised 10 billion won on Monday from her individual wide range as alleviation to the business. The South Korean federal government price quotes Hanjin Shipping requires at the very least 600 billion won to cover overdue prices like gas and also freight handling.

Stay Orders

Hanjin Shipping in discovering the alternative of bringing several of the stranded ships in close-by nations to Busan port, the Port Authority of Busan claimed lateMonday Shares of the business have actually plunged 65 percent this year, compared to a 1.9 percent gain in the standard Kospi index.

Following a united state personal bankruptcy court judgment recently securing Hanjin’s possessions from financial institutions, the business claimed Tuesday it obtained comparable orders that secure its belongings from seizures in Japan, U.K. and alsoSingapore It is likewise looking for such mandates in various other significant countries consisting of Germany, Spain and also Italy, it claimed in an e-mailed declaration.

“Hanjin Shipping will put all efforts to resolve the supply chain disruptions as soon as possible,” the business claimed in the declaration.

In Long Beach, California, Hanjin Gdynia remains in line to berth Wednesday after Hanjin Greece unloaded and also got rid of the method, and also will certainly be adhered to by Hanjin Jungil, the business claimed individually in a text.

Hurt in a market noted by overcapacity and also downturn in international profession, Hanjin Shipping declared personal bankruptcy security onAug 31, and also a court in Seoul is listening to the instance and also will certainly consider choices for a reconstruction or liquidation.

“At the end of the day, the industry has been money losing,” Wang claimed. “For like any industry, for long term, it’s just not sustainable.”

–With support from Karolina Miziolek.

© 2016 Bloomberg L.P