Prince Rupert is one of four ports shipping line Hanjin is contemplating pulling service from, according to a report published by The Oregonian.
The report indicates the company is looking to withdraw from either Prince Rupert, Portland, Seattle or Vancouver, but lists Prince Rupert and Portland as the two most likely candidates based on the tonnage handled compared to the two larger cities.
The report came the same day Hanjin released its 2013 business results which showed significant losses. Although the amount of freight being handled by Hanjin actually grew six per cent, the shipping rate fell 6.5 per cent and the result was a container division operating loss of 316 billion Korean Wan (KRW) which is equal to $324 million Canadian. Across all aspects of business, the company experienced a net loss of 680.2 billion KRW, equivalent to $698 million Canadian.
In the business results report, the company said one of the strategies to achieve profitability in 2014 is the “merger or withdrawal of non-profitable container and bulk services, cutting costs in variable freight costs and fuel costs”.
While senior Hanjin official Chang Woo Park told the Northern View he was unaware of any such plans, Prince Rupert Port Authority manager of corporate communications Michael Gurney said the potential is on the port’s radar.
“We are aware of the current thought in the industry and Hanjin’s thoughts,” he said.
“We continue to work with shippers and build relations. The Port of Prince Rupert has made a concerted effort to be aware of and address the needs of all shippers and Hanjin is no exception.”