The fallout continues from the bankruptcy of one of the world’s largest container shipping companies. South Korean company Hanjin collapsed last month under mounting debts. That’s impacted a global shipping industry already struggling with rising prices and overcapacity.

The Hanjin California remains stranded at Sydney’s Glebe Island Dock after it was arrested upon arriving here earlier this week.

A Singapore-based company won a court order impounding the ship over unpaid fuelling fees. While most of its Australian cargo was unloaded - some containers remain onboard and like the ship - in limbo.

"Now the problem for an importer whose waiting for their stock to meet contracts or to prepare for the peak season is what do they do," said Paul Zalai, director of Freight and Trade Alliance.

The world’s 7th largest container shipping company - with more than half a million containers - filed for bankruptcy last month, collapsing under mounting debt.

"I think it just comes down to poor management, it’s as simple as that at the end of the day," he said.

More than half of Hanjin’s ships have been blocked from docking in ports around the world. That’s holding up cargo belonging to other companies that have partnered with Hanjin - it’s also pushed up freight prices. Experts say Hanjin is a victim of a much bigger problem facing an industry that plays a critical role in global trade - overcapacity.

"Because there have been lags in ship building industry, ships that were ordered in times of plenty have been arriving and these have been big container carriers and so there has been a substantial excess capacity building up in the container carrier industry and that has put downward pressure on freight rates," said Michael Bell, professor of University of Sydney.

One less major player could potentially help alleviate that overcapacity - but Hanjin’s ships will most likely go to other companies.

"one failure like this is dramatic and holds up containers and causes shippers a lot of worry but it doesn’t deal with the fundamental problem of over capacity - the ships will simply be recycled, reused," he said.

For now, Hanjin ships including the California will remain in limbo, while courts and creditors try to resolve the company’s financial collapse.