News & Press

Aug
31
2016

Hanjin Shipping Bankruptcy Potential and Impact

As an advisory to our international customer base, we would like to alert you of yesterday’s news regarding Hanjin Shipping and their high potential of falling into bankruptcy.  As the #9 ocean carrier in the world, the impact of the immediate reduction of capacity (globally) is expected to open the door for the steamship line industry to increase shipping rates substantially in a very short period of time.

 

Specifically related to the largest trade lane of our USA importing customer base, there are additional factors already underway that strengthen the carriers ability to successfully implement higher than normal rate adjustments:

  1. A general reduction in operating capacity in the overall trade land since June
  2. A surge in export volumes from Asia led by major retailers gearing up for holiday season
  3. The G20 conference in Hangzhou (4-5 Sept) and the China government’s corresponding commercial and industrial restrictions in the greater Shanghai/Ningbo region, impacting transportation and supply chain flows
  4. The upcoming National Day Holiday during the first week of October is already showing increased bookings levels for the latter weeks of September.

Regarding current Hanjin bookings & shipments in route, we urge you to contact your freight forwarders for updates.  News is already present whereby Hanjin vessels are being turned away from port entry and containers already loaded are subject to potential long delays.

We welcome your questions and will do what we can to keep you updated regarding the situation.

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