Hanjin Shipping Collapse – What we know so far
It’s been a turbulent start to autumn and the busiest shipping period of the year. The Hanjin Shipping collapse has sent shockwaves around the world of import and export. There have been stories of vessels being marooned off-shore, and with them millions of tons of important cargo and shippers livelihoods.
Freedom sail above the carnage
At Freedom we have managed to steer clear of the main crisis points. Our vendor management processes gave us the foresight not to put any freight on Hanjin. As a result, we avoided our customers being exposed to the risks and fall out from Hanjin going into administration.
The fall out is in full swing elsewhere. Ships are being arrested, redirected, refused access to ports and in some cases container handling facilities are currently not accepting nor handling Hanjin cargo.
The likely demise of Hanjin will be unparalleled in the history of the industry, as we have never seen a carrier of Hanjin’s size go under before.
While Hanjin’s management will try their darnedest to pick up the pieces, it is very unlikely that anything can be recovered at this stage.
Any rescue plan or white knight should have come before the weekend, now the shippers are gone, and they are not coming back.
The short term fallout will be a 5-6% reduction in overall capacity on the Asia Europe routes served by Hanjin resulting in possible upward pressure on rates, especially in the peak season coinciding with Golden Week in China at the end of this month.
Longer Term we expect the other major carriers to pick up the slack in capacity.
Beyond this we can only comment that volatility hasn’t left the container freight scene. Yet.
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