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Hanjin ships, cargo and sailors stranded at sea
http://www.bbc.com/news/business-37241727By Andreas Illmer
BBC News
1 September 2016
From the section Business
With South Korea's biggest shipping company filing for bankruptcy protection, the vessels, sailors and cargo of Hanjin Shipping are stuck in limbo, stranded at sea. Ports, fearing they will not get paid, refuse to let them dock or unload. That means the ships are forced to wait for Hanjin, its creditors or partners to find a solution. It's a case of unprecedented scale, with experts expecting the deadlock to last for weeks, if not months.
(snip)
Not only are ships not allowed to unload, containers waiting to be picked up are also being held back by the ports as collateral over unpaid bills. And even if the ports did allow them in, Hanjing would probably not as the vessels could expect to be immediately repossessed by the firm's creditors.
Beyond the ships and containers, there is of course the cargo within those containers - in many cases part of a tight chain of supply and delivery. By September, the global shipping industry is already into what is its busiest time of the year ahead of the Christmas season.
(snip)
That means that a lot of the goods en route to the US are geared at the busy year-end holidays and any disruption will be a major headache for the companies that have entrusted their products into the hauls of the Hanjin freighters.
(snip)
13 replies
= new reply since forum marked as read
= new reply since forum marked as read
on the highways. Apparently Hanjin carries about 7% of American cargo from Asia. I wonder how long until a Hanjin effect turns up on Amazon as "Not available at this time." Increased shipping rates will be very soon I imagine.
Wonder about any possible political fallout. It's the kind of story that can become personal to a lot of people and businesses, including some layoffs, and there are always plenty of people eager to find fault with our government. (Yes, of course, I know. 
)
...bankruptcy is having "a ripple effect throughout the global supply chain" that could cause significant harm to both consumers and the U.S. economy, the association wrote. ... The confusion might sink some trucking firms that contract with Hanjin to deliver cargo containers carrying everything from electronics to car parts from ports to company loading bays. "They've got bills to pay — they could literally close their doors over this," said Peter Schneider, Fresno-based vice president of T.G.S. Transportation Inc.
WSJ:
Global demand and trade have suffered since the 2008 recession, while steamship lines continued to build more and larger vessels — immense ships that were conceived as cost-effective when freight costs were higher several years ago.
But weaker trade and overcapacity have sent ocean shipping rates plunging in recent years. A few months ago, Poskus said, prices hit historic lows globally — down to as much as $600 per container from Shanghai to Los Angeles. That wouldn't even cover fuel costs for the huge ships, he said.
Poskus expects the current spike in prices to last only a month or two. With about 5 percent of ships in the global trading fleet sitting idle, there is plenty of room to take over Hanjin's capacity and carriers already are discussing the possibility of adding ships, he said. However, prices will have to rise somewhat in order to be sustainable, he said — perhaps to about $1,000 per container.
But weaker trade and overcapacity have sent ocean shipping rates plunging in recent years. A few months ago, Poskus said, prices hit historic lows globally — down to as much as $600 per container from Shanghai to Los Angeles. That wouldn't even cover fuel costs for the huge ships, he said.
Poskus expects the current spike in prices to last only a month or two. With about 5 percent of ships in the global trading fleet sitting idle, there is plenty of room to take over Hanjin's capacity and carriers already are discussing the possibility of adding ships, he said. However, prices will have to rise somewhat in order to be sustainable, he said — perhaps to about $1,000 per container.
