The Hanjin bankruptcy has resulted in financial hardship for many companies and caused turmoil and time delays throughout the supply chain.
      On August 31, Hanjin Shipping announced it had filed for bankruptcy. It is the largest bankruptcy in the shipping industry in recent years.
      Hanjin owned 37 containerships and chartered 62 others, making it the world’s seventh largest container shipping line, which represents about 3.2 percent of the global container shipping capacity with more than 623,000 TEU of shipping capacity disrupted.
      FlyingTypers, like everyone else in the shipping world, has been following the Hanjin story as it continues to unfold.
      To explore details of the impact the Hanjin bankruptcy has had on the ground, we reached out to Jo Frigger, CEO of EMO Trans.
      EMO Trans operates a network of more than 250 locations in 120 countries.  
      “Many Hanjin ships around the world were stopped at sea, and others were stranded in ports, unable to discharge their cargo,” Mr. Frigger said.
      “Some Hanjin vendors charged additional costs as they were understandably concerned that the steamship line would not pay their bills.
      “As a result, containers were held hostage, only to be released against immediate payment.
      “This practice often resulted in duplicate charges.
      “Fortunately, the EMO Trans Ocean teams quickly pinpointed the location of our freight and immediately initiated the release process.
      “Hopefully, this ongoing situation will end soon.
      “Afterward, it is unclear how much of the overcharges can be recovered, but our priority is to deliver the goods to our customers as soon as we are able.  
      “It is difficult to determine whether the Hanjin disaster will result in a more balanced price structure among the carriers that allows them to operate on a profitable level, but it is clear that many ocean, air, and truck carriers are suffering from reduced pricing caused by overcapacity.
      “In an interesting development, Maersk Lines has decided not to build new ships, but rather try to grow through mergers and acquisitions that will not increase the global fleet.
      “I think this is a smart business move,” Jo Frigger said.
Geoffrey Arend

Vol. 15 No. 75
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