After nearly two decades of service to the port, the carrier has confirmed that it will end its weekly service in January, putting the port’s container terminal and regional economy at risk, The Oregonian reports. The move is expected to hurt big importers such as Fred Meyer and Columbia Sportswear, as well as exporters, who will now have to pay more to truck containers to the Port of Seattle. The pullout will also end a $250,000 weekly payroll for longshore workers who load and unload the vessels at Terminal 6.
Hanjin Shipping, the largest container line calling at Portland’s Terminal 6, was negatively impacted by increased terminal charges and an ongoing longshore labor dispute. The International Longshore and Warehouse Union and ICTSI Oregon, terminal operator, have exchanged accusations of blame regarding the pullout.
Moreover, the troubled carrier, which reported a net loss of about 80.4 billion won (about US$72.3 million) in the second quarter of 2013 and a net loss of 34.8 billion won in the first quarter, badly needs to cut costs amid overcapacity concerns.