Hanjin Shipping Declares BankruptcyCaitlin Donnelly
Last week Hanjin Shipping Line, the 7th largest container shipper in the world, declared bankruptcy. This news shocked the entire logistics industry, and has caused some major disruptions to all parts of the supply chain. While the future is uncertain for Hanjin’s proceedings, here are some common questions and answers we have as of now:
Will My Products Be Stuck at Sea?
Due to the bankruptcy, many ports are not allowing Hanjin ships to dock, and they are stuck anchored offshore. Hanjin and its parent company are currently working on a solution to bring these ships to port to unload stranded cargo.
We have contacted our customers who are affected by this situation and are working out contingency plans. No Hanjin ships have departed from ports in China since they declared bankruptcy, so if you have not been contacted by us, you can safely assume your shipment is not on a Hanjin ship.
What Will Happen to Shipping Rates?
Shipping rates tend to rise significantly during the 4th quarter in a normal year. Due to diminished shipping capacity across companies and general panic caused by the bankruptcy, we have already seen a 25% increase in shipping costs since last week.
Shipping agents have decided to not honor quotes made prior to the bankruptcy announcement, so if you received a quote before then, you will need to be re-quoted. Air freight and express rates have also risen, as sellers rush to get replacement shipments to their vendors to cover stock stuck at sea.
Will There Be Delays on Other Shipping Lines?
This time of year comes with delays, regardless of major bankruptcies. The ports shouldn’t be backed up more than normal due to holiday shipping. Please use our shipping calendar to ensure your goods are shipped in time to arrive at Amazon’s warehouses by Black Friday.
For the best summary of the Hanjin Shipping situation and how it’s affecting shipping worldwide, please refer to The Wall Street Journal’s article, Move by South Korea’s Hanjin Shipping Roils Global Trade.