Hanjin Shipping says that because of escalating costs, it
will cease its direct-call service to Port of Portland as part of its Pacific
Northwest Hanjin Express Service (PNH) effective January 2014.
With the change, all shipments currently being served via
the Port of Portland will be rerouted through the Seattle or Tacoma ports,
according to an Oct. 17 letter to customers. All other port calls on the PNH
service are expected to remain the same.
“Decision to stop Portland port call service comes with much
difficulty knowing the level of appreciation received from our customers with
this exclusive service in and out of great State of Oregon,” the letter reads
in part. “However, the cost of serving this port has escalated significantly
this year to deter us from maintaining quality service which you have come to
expect.”
Hanjin is the largest container carrier calling at Portland’s
Terminal 6. The service represents about 80 percent of container throughput at
the terminal, averaging about 1,600 containers per week. Hanjin has had a
presence in the area since 1994, and has contracts with many of the area’s
largest shippers.
The departure of Hanjin would leave Hapag-Lloyd, Hamburg Süd
and Westwood Shipping as the remaining direct calling carriers at Terminal 6.
The port says the change would not affect other business lines such as autos,
minerals, grain, steel or liquid bulks.
Hanjin leadership staff is expected to meet with officials
from the port and terminal operator ICTSI Oregon in coming weeks. Meanwhile,
Hanjin will continue weekly direct calls at Terminal 6 for the duration of the
calendar year.
“Hanjin has been a valued customer of the port for almost 20
years and we continue to believe that they have a valuable container shipping
franchise in this market,” Port of Portland Chief Commercial Officer Sam Ruda
said in a statement.
