Hanjin Shipping Co., which filed for bankruptcy protection, has disrupted international shippers and their customers as container ships owned by the company have become trapped at various ports around the world because docking fees need to be paid. Hanjin filed for Chapter 11 protection in South Korea last week, and Chapter 15 in the US a few days later. A US judge gave the company protection saying he wants goods off loaded rather than laying offshore, waiting in an ocean of uncertainty.
This action comes as the global economy and shippers in particular deal with slow growth worldwide; a reduction in movement of crude oil; an international tensions caused by the ongoing conflict(s) in the Middle East, the South China Sea, and Ukraine.
The Hanjin brand is familiar to most residents of California who move about Los Angeles and San Francisco: the huge container ships come and go on a regular basis, displaying their loads in impressive fashion as the laden ships cruise into the harbor(s), stacked to impossible heights with thousands of steel containers holding every conceivable product. The shipping industry has been a victim of too much capacity for the level of international trade that exists. Owners have been scrapping hulls to reduce costs and to respond to the current climate of international trade. Dismantlers/breakers in India and other locales have been busy, despite low prices for steel scrap(partly because of China's over zealous producers). Where this will end is unknown, but bankruptcy lawyers are sure to reap benefits for years to come.
No comments:
Post a Comment