CAI International, Inc., an international transportation finance and logistics company says it is financially exposed as a result of the Hanjin Shipping Co. bankruptcy filing to the tune of $4.6 million.

That total includes exposure on $2.6 million of uninsured accounts receivable and $2 million in insurance deductibles.

CAI has approximately 15,000 containers on lease to Hanjin representing $40 million of equipment exposure based on net book value, or approximately two percent of the company’s rental revenue assets. CAI’s share of the overall container leasing market is approximately six percent.

On August 31, 2016 Hanjin, the world’s seventh largest container shipping line, announced that it had filed for court protection in South Korea from its creditors. A receiver was appointed the following day.

CAI believes, based on prior experience, that most of its containers will be recovered. CAI units on lease to Hanjin were manufactured for CAI with its logo and markings, which should assist with recovery and re-leasing efforts.

CAI maintains insolvency insurance that covers the value of unreturned containers, damage to recovered units, recovery costs, legal expenses, and the loss of post-bankruptcy income for a period from the default date to the earlier of the return of the equipment or six months. The company’s insolvency insurance has a $2 million deductible. CAI expects that its insurance policy limits will be adequate to cover any potential losses in excess of the deductible.

“While we are unable to definitively estimate the total impact of Hanjin’s bankruptcy filing on our financial results,” said a company statement, “we believe our exposure will be limited to $2.6 million of accounts receivable related to income recognized prior to the third quarter of 2016, which is not insured and may not be recovered, and up to the $2 million insurance deductible on our insolvency policy.”

CAI operates a worldwide fleet of approximately 1.2 million CEUs of containers, and owns a fleet of 5,936 rail cars that it leases within North America.