[140710.EN.SEA] Hanjin Blasts Sumitomo Bank's Heavy Handed Tactics In Box Dispute

HANJIN SHIPPING has blasted Sumitomo Mitsui Banking Corporation's decision to call out US Marshals to arrest the Korean carrier's containers in the United States and to send officials to "hunt the boxes down wherever in the world they may be".

Hanjin said this behaviour was "escalating the situation" and "'causing significant damage to our business", reported London's Containerisation International.

Sumitomo Bank and Bermuda-based lessor Unitas, secured arrest warrants in May from six US courts against 5,900 containers leased by Unitas to Hanjin in 2001. Sumitomo first sued to enforce its first priority mortgage on the boxes after Unitas failed to pay its instalments after saying that Hanjin had not paid its bills.

Hanjin has since posted a US$2.6 million for 1,042 disputed containers in the US, after which they were ordered to be released. Hanjin also offered to put up an $8 million payment to prevent seizure of another 4,800 boxes by US Marshals.

But Sumitomo Bank and Unitas insist on $14.8 million for all the disputed 5,900 containers, and demand that the sum be increased to $22 million.

Hanjin is also embroiled in a British legal dispute whereby the carrier says its $2.6 million payment at the end of the lease made it the owner of the disputed boxes. But Unitas says that payment was on for lease termination and that Hanjin must pay that sum again to gain title.

"We are deeply concerned and extremely disappointed with the unreasonable approach adopted by Sumitomo Bank," said Hanjin in a statement to CI.

"The initial amount in dispute is less than $3 million. However, Sumitomo Bank is taking steps, which risk escalating the situation, instead of easing the trouble. They have requested the court to arrest our containers, which is causing significant damage to our business."

Source : HKSG, 09.07.10.