“There is something to be learned from a rainstorm. When meeting with a sudden shower, you try not to get wet and run quickly along the road. But doing such things as passing under the eaves of houses, you still get wet. When you are resolved from the beginning, you will not be perplexed, though you will still get the same soaking. This understanding extends to everything.” ― Tsunetomo Yamamoto The Hagakure: A code to the way of samurai

1. EXPLAINER: WHY HANJIN'S SHIPS ARE STRANDED AROUND THE GLOBE
By Michael Murray and Ryan Eagle, Esq.
The shipping industry suffers from an inherent
inflexibility in responding to changing economic
conditions.
Demand for shipping has fallen since the global financial crisis, at
the same time as technology has started to produce larger mega-
ships. Over capacity is one major problem.
Container operators are also increasingly constrained by
competition laws in the US, the EU, Japan and, more
recently, China.
The company's financial woes have caused it to seek protection
from its creditors through Korea's corporate "rehabilitation"
laws. This is similar to Chapter 11 bankruptcy in the United
States. This is where the insolvent debtor restructures the debts it
owes to creditors, according to a rehabilitation plan, while the
company continues its operations.
Ideally, the plan will give Hanjin sufficient breathing space
while the receiver restructures its business into perhaps
a leaner operation, or one in which others, including creditors,
may take a financial interest.
A range of other players - the owners of vessels chartered to
Hanjin, and bunker (fuel) suppliers and port agents in many
different countries - all add to the complexity.
[S]hipping remains a business subject to the vagaries of
international trade and economic conditions.
[Emphasis Supplied]
Source: The Conversation
https://theconversation.com/explainer-why-hanjins-ships-are-stranded-around-the-globe-65337
5 of The Most Incredible Corporate Comeback Stories
1. Apple 2. FedEx 3. Chrysler 4. IBM 5. Priceline
Source: Becker, Sam. The Cheat Sheet. June 06, 2015
http://www.cheatsheet.com/business/5-of-the-most-successful-corporate-
turnarounds.html/?a=viewall

2. The Agreements on file with the Federal Maritime Commission evidence Hanjin
is a major player in the maritime industry.
CARRIER TYPE AGREEMENT NO. NAME
HANJIN CONTAINER LINES, LTD./SEA-LAND SERVICE| 203 012223 ASSESSMENT AGREEMENT OF CARRIER MEMBERS OF USMX
HANJIN SHIPPING CO., LTD.|HANJIN 204 010099 INTERNATIONAL COUNCIL OF CONTAINERSHIP OPERATORS
HANJIN SHIPPING CO., LTD.|HANJIN 205 011223 TRANSPACIFIC STABILIZATION AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 204 011290 INTERNATIONAL VESSEL OPERATORS DANGEROUS GOODS ASSOCIATION AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 011305 HANJIN/UNITED ARAB VESSEL SHARING AND SLOT ALLOCATION AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 217 011324 TRANSPACIFIC SPACE UTILIZATION AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 205 011325 WESTBOUND TRANSPACIFIC STABILIZATION AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 203 011405 OCEAN CARRIER WORKING GROUP AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 203 011409 TRANSPACIFIC CARRIER SERVICES, INC. AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 226 011515 STEAMSHIP LINE CO-OPERATIVE CHASSIS POOL AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 204 011679 ASF/SERC AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 203 011733 COMMON OCEAN CARRIER PLATFORM AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 203 011743 GLOBAL TRANSPORTATION NETWORK AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 011794 COSCON/KL/YMUK/HANJIN WORLDWIDE SLOT ALLOCATION AND SAILING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 226 011884 HAMPTON ROAD CHASSIS POOL II AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 204 011961 THE MARITIME CREDIT AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 226 011962 CONSOLIDATED CHASSIS MANAGEMENT POOL AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 217 011968 HANJIN-ELJSA CROSS SLOT CHARTER AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 226 011980 SOUTH ATLANTIC CHASSIS POOL AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012076 ELJSA/CKYH VESSEL SHARING AGREEMENT-TRANS ATLANTIC EXPRESS SERVICE
HANJIN SHIPPING CO., LTD.|HANJIN 232 012121 COSCON/HANJIN/WHL/PIL VESSEL SHARING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 217 012160 GRAND ALLIANCE/HANJIN VSA
HANJIN SHIPPING CO., LTD.|HANJIN 232 012226 ELJSA-HANJIN SHIPPING VESSEL SHARING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012256 CHE VESSEL SHARING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012262 G6 HANJIN VESSEL SHARING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 217 012289 HANJIN SHIPPING - EVERGREEN LINE SLOT CHARTER AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012300 THE COSCON/KL/YMUK/HANJIN/ELJSA SLOT ALLOCATION AND SAILING AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012304 HANJIN/UASC/CMA CGM/COSCON VESSEL SHARING AND SLOT CHARTER AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 217 012332 CMA CGM/HJS SLOT EXCHANGE AGREEMENT, ASIA-U.S. WEST COAST
HANJIN SHIPPING CO., LTD.|HANJIN 217 012375 HANJIN/ZIM SLOT EXCHANGE AGREEMENT
HANJIN SHIPPING CO., LTD.|HANJIN 232 012391 HANJIN/UASC/CMA CGM/COSCON VESSEL SHARING AGREEMENT
Source: Federal Maritime Commission. Online Agreement Library. Bureau Of Trade Analysis
http://www2.fmc.gov/agreements/carrier_npage.aspx Web accessed: 9/28/2016

3. The economic and financial crisis facing Hanjin is not isolated to Hanjin.
Shipping companies, freight forwarders (land and sea), port operators and port agents,
marine terminal operators, fuel suppliers, sea farers and longshoremen are impacted by
the global crisis facing the maritime industry.
TRUST as evidenced substantively by the signed Agreements is being tested.
“There is a loss of faith among customers. It’s very unlikely Hanjin
can come back from the ashes.”
Source: The Guardian
https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-
causes-turmoil-in-global-sea-freight
The “Good Samaritan Rule” of coming to the aid of one in distress has been
obviated by the rule of “Survival of the Fittest”. This is a sad commentary of an industry
that provides carriage of goods for the world.
“South Korea's finance minister … called on Hanjin Group to take
responsibility for a worldwide paralysis of maritime cargo delivery
stemming from court receivership of its debt-laden shipping unit.”
Source: The Korea Times. Finance minister urges Hanjin
to take responsibility for logistics crisis. 2016-09-06.
http://www.koreatimes.co.kr/www/news/biz/2016/09/123_2135
37.html
OUR RESPONSE: Hanjin leads by example. Here is an example meritorious for all in
the maritime industry, business and members of the public. Hanjin’s open, candid and
forthright acknowledgement of its financial status, actions to seek rehabilitation to improve,
innovate and evolve into better corporate entity is testimony to its leadership and their loyalty,
courage, veracity, compassion, honor and commitment exemplary of excellence in corporate
governance and corporate ethics.
WE wish Hanjin ap-eulo manh-eun seong-gong! Much success going forward!