After Hanjin confirmed its collapse, things have escalated quickly.
Nearly half of Hanjin vessels have been refused from ports around the world, with ten ships and counting arrested at Asian Ports.
Freight rates between Asia-Europe and Asia-US are soaring as desperate shippers scramble to move their cargo from Hanjin vessels. The company have been suspended from the CKYHE alliance and shippers using the alliance partners may be caught up in the chaos, posing significant delays to cargo whilst the shock waves settle.
Hyundai Merchant Marine have already offered some support on the Asia – Europe routes deploying vessels on the trade lane to alleviate some of the headache for trapped shippers, (at a price of course).
Although it comes as no surprise that Hanjin announced its bankruptcy, the chain of events has sent a sobering wake up call to the industry of how quickly things unravel. Repercussions will be felt across global supply chains globally with US retailers urging government to intervene to minimise disruption.
See below infographic illustrating Hanjin’s size in numbers.