With 530,000 containers under their control globally the failure of Hanjin Shipping has inevitably had a negative impact on the available capacity in the the Asia/North Europe trade, which had already been reduced by almost 10% in the last 15 months.
Global container shipping has been experiencing difficulties for many years, with the Far East Westbound trade experiencing the most volatility.
The shipping lines have tried many tactics to support their pricing strategies, with capacity reduction by cancelling sailings and making ships redundant chief among them.
Hanjin’s bankruptcy has, at a stroke, withdrawn a significant chunk of the trade’s current capacity and means that cargo owners will race to find space in the short term, driving up rates as demand exceeds supply.
Though that missing capacity is likely to return to the market, we are hopeful that Hanjin’s travails might yet bring stability to the market, with a sensible supply of space and the understanding by shippers and shipping lines that an effective service must come at a viable price.
Our sea freight teams in the UK and overseas have been working with customers affected by these shocking events and will continue to support them until its effects have disipated.
If you have any questions or concerns about this unfolding situation and how it might impact on your current or future business situation, then please do not hesitate to contact us directly.