2 Replies Latest reply on Sep 9, 2016 10:16 AM by Alvaro Fernandez

    Stranded at sea: Hanjin Shipping Co.

    Alvaro Fernandez Apprentice

      Usually when I hear about major supply chain disruptions in the news, it’s about natural disasters, such as earthquakes or typhoons, major incidents such as the Tianjin explosions. Surely bankruptcies have a place in any supply chain risk calculations, but usually it relates to a supplier going out of business, or lack of available cash reserves to weather a stronger than expected recession (or a bank collapse, such as Lehman’s in 2008)


      I suspect this is about to change with the news of Hanjin Shipping Co. seeking protection from creditors. According to the WSJ, Hanjin handles close to 8% of the trans-pacific trade volume for the U.S. market, making this one of the largest (if not the largest) container shipping failure in history.  The BBC is reporting that there are some 540,000 containers caught up at sea. That’s a lot of inventory that will be sitting in those “In Transit” columns for many weeks, or even months.


      Given the time this is happening, just before the holiday season, I could think of it as one of the many what-ifs situations where planners do benefit from trying multiple scenarios and collaborating to come ahead of such a messy situation. I wish the best tools for those planners. I don’t want to see a happy Grinch at the end of the year!


      Are you being affected by Hanjin’s bankruptcy? What would be the first steps you’d take if you were? Is it even possible to be ready for such a major event?

      Let us know in the comments.

        • Re: Stranded at sea: Hanjin Shipping Co.
          rosen-cost-acct@comcast.net Apprentice



          The owners of $14 billion in cargo stranded on Hanjin Shipping Co. vessels are considering desperate measures to recover their goods.  Courts in Korea and in the U. S. have said the company's ships can enter ports without fear of seizure by creditors, but who will unload them if they dock.  Some shippers are not waiting to find out.  Samsung Electronics, which has $38 million in cargo on Hanjin ships, is considering leasing 16 cargo planes.  Others say they have no idea where their goods are, let alone having a plan to secure the goods.  Trans-Pacific shipping rates have increased by 50% amid the uncertain times.. Brokers are describing the situation a mere chaos.