Hanjin Shipping: The ripple effect

The Hanjin Shipping bankruptcy situation has proven to not be as directly impactful to our customers as we first thought. However, the situation does continue with ripple effects:

  • Leaving cargo at sea because there is no financial backing to pay for port docking fees, cargo indexunloading services and fuel tops the list. More than 80 ships remain floating with some $14 billion worth of cargo according to Global Trade.
  • Pricing on freight rates for imported containers to the U.S. is expected to rise, some say as must as 54 percent. To date, we have seen increases in the 30 percent range.
  • Shopping during the holidays could be interesting for retailers. June through October is high season for ocean container shipping in preparation for holiday sales. Samsung has $38 million in goods stranded on Hanjin ships. The company is considering paying nearly $9 million to retrieve its cargo.
  • Trucking companies that haul for Hanjin may end up losing money unless they can get beneficial cargo owners (BCOs) to pay for the shipments carried from the port of entry to the customer warehouse. In many instances, the BCO paid the shipping line for the freight move in advance.
  • Alliances are getting a second look. A U.S. federal maritime commission says shipping alliances may have to provide they have emergency procedures in case a member collapses.

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