The largest shareholder of Hanjin Shipping has agreed to lend 60 billion won ($53.96 million) to help unload cargo that has been stranded since the world's seventh-largest container carrier collapsed late last month. As Laura Frykberg reports, the news came as Denmark's Moller-Maersk - the world's biggest container shipping business - announced it will split into separate divisions as low freight and oil prices take their toll.
Hanjin has been barely keeping afloat. Weighed down by heavy debt and the prospect of bankruptcy. But it's SOS signal may have been answered. The Korea Development Bank has offered it 45 billion dollars - to save A LOT of stranded cargo. SOUNDBITE (English) IHS GLOBAL INSIGHT, DIRECTOR OF SOVEREIGN RISK, JAN RANDOLPH, SAYING: "Up to 14 billion dollars worth of goods have been stranded in these container ships because of the bankruptcy, it's hugely disruptive for supply chains on both sides - both the Asian side but also the U.S. and European sides." It's not the only shipping company in troubled water. The world's largest - Denmark's Maersk - is splitting its 112-year-old business in two. Transport will become their main focus and attempts will be made to get out of energy. As the industry faces its worst downturn in years. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "There is no doubt that the world trade slow down has had quite a big impact on freight traffic, shipping freight traffic. And that means that we have to look at our index, because that still represents the bulk of what we move around." Hanjin's beleaguered shares were up 28 percent boost on the news. But there are choppy waters ahead even with the credit, it's still short of the money it needs to clear all its cargo.