Author Topic: Hanjin bankruptcy and asia trade  (Read 2355 times)

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randgust

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Hanjin bankruptcy and asia trade
« on: September 02, 2016, 08:58:15 AM »
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I can't imagine this won't at least mess up somebody's shipping and delivery schedules here for China-produced models, and who knows who else.....

http://abcnews.go.com/International/wireStory/hanjin-bankruptcy-global-shipping-chaos-retail-fears-41810651

When railroads go bankrupt/shut down there's things like directed service orders from connecting carriers, I have no idea what precedent is in international marine trade if your entire container gets stuck on a ship.

jmarley76

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Re: Hanjin bankruptcy and asia trade
« Reply #1 on: September 02, 2016, 09:36:41 AM »
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Wow. I wonder if the private sector, government, or someone/something else will step in to guarantee some of the payment for unloading the ships to get things moving? It will be interesting to watch this unfold for sure...

Scottl

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Re: Hanjin bankruptcy and asia trade
« Reply #2 on: September 02, 2016, 09:38:23 AM »
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This has been in the news for a bit.  There is a Hanjin ship tied offshore at Prince Rupert in limbo and no doubt many more like it.

TLOC

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Re: Hanjin bankruptcy and asia trade
« Reply #3 on: September 02, 2016, 11:01:36 AM »
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I would think that if anybody would help it would be the Korean government. But with what sounds like quite a few ships seizing the cargo that it maybe too late. If the investment bank won't help them the debt load must be over whelming.

Tom

C855B

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Re: Hanjin bankruptcy and asia trade
« Reply #4 on: September 02, 2016, 11:14:30 AM »
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Wow... this is huge, really. The cheap, reliable, reasonably fast "pipeline" is what makes the whole China process possible. As the hobby has discovered, the Chinese on their own have become less than reliable, and now the "you might not get it at all, or anytime soon" from the shipping aspect really puts a kink in things. It's a classic case of "economies of size" versus "eggs all in one basket".

I was reading a business analysis on this and there will be some short-term scrambling for capacity, taking two or three months to level out. So the appearances are that what is "parked" will not resolve for goods to be unloaded in time and make distribution for the holiday buying frenzy. The various retailer associations are already screaming bloody murder about millions or billions in losses.
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Spades

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Re: Hanjin bankruptcy and asia trade
« Reply #5 on: September 02, 2016, 11:55:21 AM »
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The problem is exceedingly low shipping rates  and excess shipping capacity combined with over leveraged shipyards/shippers. They are already scrapping ships earlier than years pass. Finding a shipper won't be the immediate problem, it is the crews and goods on the Hanjin ships at sea. The Korean Government said enough. 

It will pretty much look like the PC bankruptcy, hopefully a bunch of Conrail 's will arise.

Cajonpassfan

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Re: Hanjin bankruptcy and asia trade
« Reply #6 on: September 02, 2016, 12:02:51 PM »
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Shanghai to LA shipping prices are already up, from $1100 to $1700 per container. This will hurt...
Otto K.

narrowminded

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Re: Hanjin bankruptcy and asia trade
« Reply #7 on: September 02, 2016, 09:31:39 PM »
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Oh, the webs we weave. :| 
Mark G.

OldEastRR

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Re: Hanjin bankruptcy and asia trade
« Reply #8 on: September 02, 2016, 10:06:10 PM »
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So much for "just in time" delivery. You gotta wonder if the people who come up with these modern business concepts (usually to avoid taxes) ever knew that nothing runs forever, things break down, systems collapse, parts of the supply chain disappear unexpectedly. I guess not -- they're only focused on hitting the company profit goal that month so they get a big bonus. Idiots.

Hamaker

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Re: Hanjin bankruptcy and asia trade
« Reply #9 on: September 03, 2016, 12:44:21 AM »
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Correction: You must EXCEED the company profit goals to get the big bonus.  Profits are the life blood of any business.
I started with nothing and still have most of it left.

OldEastRR

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Re: Hanjin bankruptcy and asia trade
« Reply #10 on: September 03, 2016, 04:19:37 AM »
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And achieving high profits at any social, moral, legal or humanitarian cost is the highest goal of all.

Lenny53

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Re: Hanjin bankruptcy and asia trade
« Reply #11 on: September 03, 2016, 10:27:43 AM »
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This has been in the news for a bit.  There is a Hanjin ship tied offshore at Prince Rupert in limbo and no doubt many more like it.

Entry to port refused for 27 ships, feel sorry for the crews.

http://www.usnews.com/news/business/articles/2016-09-02/hanjin-bankruptcy-causes-global-shipping-chaos-retail-fears

Englewood

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Re: Hanjin bankruptcy and asia trade
« Reply #12 on: September 03, 2016, 03:30:14 PM »
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Well, now we have an excuse as to why holiday sales will be down compared to last year.  :facepalm:

BCR751

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Re: Hanjin bankruptcy and asia trade
« Reply #13 on: September 03, 2016, 07:13:51 PM »
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Maybe this is push that's needed to re-think getting everything made in China.  I certainly hope so.

Spades

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Re: Hanjin bankruptcy and asia trade
« Reply #14 on: September 03, 2016, 11:17:13 PM »
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Hanjin is Korean ROK, not China PRC.  Your Lucky Goldstar (LG) and other Korean Chaebol will feel the pinch first.The ROK government thought it best to stop the bleeding and they will find a suitor for Hanjin assets, There is an overcapacity in the maritime industry, ships, shipyards etc. this happens all the time in transportation and all forms of business.  Think USA railroads in the 1970's or Airlines in the last 30 years, yet they are still operating.  The global supply chain has worked well except for the rare hiccup for the last 200 years plus.

Just in time I believe refers to manufacturing, can't tell you all the neat stuff I have seen in the back of the Zenith o' TexMex aeronautical engineering because some one needed it now to keep the line rolling.  Container ships while very efficient in endothermic/economic terms is not the quickest means to move stuff out there, that is why we still have warehouses.

P.S. China shipping lines and yards are consolidating, the signs aren't  good