As most are aware Hanjin Shipping filed for court receivership last week after the banks withdrew backing for the worlds 7th largest container carrier. Hanjin was a member of the CKYHE Alliance along with Cosco, K Line,Yang Ming and Evergreen.
We would seek to assure clients that, after a thorough investigation, we are pleased to advise that no cargo handled by dap UK has been booked directly with Hanjin Shipping or is currently loaded to any of their vessels by one one of the Alliance members.
Patently the filing for bankruptcy will have sent shock waves through the industry in general and it as reported by Drewry’s: “Hanjin’s move into administration shatters the complacency that major carriers are immune to failure and can stomach prolonged years of low rates and financial losses.”
In their view ” The impending bankruptcy of Hanjin should serve as a warning that carriers do have breaking points and that they will not always be rescued. Unless shippers make the altruistic decision to pay more to save carriers (unlikely) they will need to pay more attention to the warning signs.”
Already the collapse of the Korean line has contributed to a rise of approximately 40 per cent on Asia-European services. Although some may see this as an initial ‘knee-jerk reaction’, undoubtedly there will be long term implications as a result of this.