South Korean Hanjin Shipping Co., one of the world's top ten container carriers in terms of capacity, would typically transport everyday consumer goods such as: clothing, electrical goods and other non-perishable goods. The company filed for bankruptcy in Seoul in August and, as a result, various ports around the world that would normally welcome Hianjin ships are reluctant to do so over fears of not getting paid.
Some ships were seized by creditors on their arrival, forcing the company to pay out more money to unload cargoes. There is approximately $14billion worth of cargo undelivered, sending ripples through global trade networks for consumer goods.
Nearly 100 vessels full of containers are believed to be stranded globally. Some ports and terminals are beginning to levy or impose taxes and fines in order for these stranded containers to be released. The disruption to cargo throughout the world presents an opportunity for other major carriers.
Big brands such as Samsung and LG, which are both headquartered in South Korea have cancelled their agreements with Hanjin and are seeking alternative carriers.
Looking closer to home, it is clear that the collapse will have a direct impact on the supply chain and retailers operating across the globe, including in the UK, as certain stock orders will be delayed or, in some cases, cancelled, to then sell onto the consumers. With major holidays upcoming such as Christmas and Thanksgiving in America, the fall of one of the largest container carries is bound to impact the availability of goods during these busy periods.
If you have any questions on the above please do not hesitate to contact the team at McDaniel & Co. on 0191 281 4000 or firstname.lastname@example.org: Contract, News