hanjin falls over

[erice 732]

 Hanjin Shipping, South Korea’s biggest container line and the world’s seventh-largest, filed for receivership. Some 66 of its ships, loaded with $14.5 billion of goods, were left stranded at sea.

 

Ports around the world did not want to let Hanjin’s vessels dock because the bankrupt line had no money to pay unloading fees. 

 

Companies that need to move their goods around the world by sea are worried that other container lines will soon follow Hanjin into bankruptcy, throwing their supply chains into chaos

 

Of the biggest 12 container lines that have published results for the past quarter, 11 have revealed huge losses. Maersk, a Danish firm that is the world’s largest container carrier, is also in the red, and announced on September 22nd that is will break itself up to compete.

 

in Japan three firms, Mitsui OSK Lines, NYK Line and Kawasaki Kisen Kaisha, look especially vulnerable

 

the result of overcapacity in the shipping industry. Since the financial crisis, too many vessels have been built and not enough scrapped, while the growth in global trade has decelerated

 

 Until some serious scrapping takes place, do not be surprised if more shipping lines declare bankruptcy.

 

http://www.economist.com/blogs/economist-explains/2016/09/economist-explains-14?fsrc=permar|text1

[harrytom 655]

Maersk heard they were in trouble 12 months ago and above confirms.