Aug 31, 2016 – Today, global transportation giant Hanjin Shipping filed for bankruptcy protection, a day after the company’s creditors discontinued financial support. The South Korean shipping company is the world’s 7th largest steamship line by volume, and has been under a creditor-led restructuring program since May. Slumping global cargo volume has led to Hanjin reporting losses in four of the past five years. Read more about this global transportation story here.
The impact of this news is being felt by supply chains around the world. At most ports, Hanjin vessels are being captured by terminals, and in some cases are being rejected for berthing altogether. Hanjin is a member of CKYHE Alliance, CKYHE Alliance partners including Evergreen Line have announced they are rejecting all new bookings aboard Hanjin owned & operated vessels. The long term impact on Hanjin’s alliances will be significant, and rumors of a possible merger with domestic rival Hyundai Merchant Marine continue to swell.
Immediately, vessel space becomes very tight- and is only heightened by shippers heading into peak season. As a result of reduced capacity, it is expected that the Sept 1 GRI will be implemented successfully, with an additional full PSS on Sept 15 a distinct possibility. In other words- prices are up and capacity is down, as logistics professionals we must be prepared.
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