Hanjin shipping belly up

[BanCoe]

Problem is when the weaker ones fall the so called survivors take opportunity and jack up freight rates as there is a sudden vacuum and they take opportunity to rake in the money until some consolidation takes place again ;

Don't know if the Kimchi govt will bail out Hanjin as it did bailing out some chaebols (conglomerates) during last Asian crisis : Too many jobs at stake and Hanjin also sold off its good assets so no one wants to take over the rust buckets

[Keithchue]

isn't fuel cheaper now? hanjin might be a victim of carrying too much hedge on fuel previously and paying thru their nose for fuel.  cost of ship already sunken, so can't be that. 

 

business point of view, load is dropping, but we in this industry, know that those major electronics manufacturer will ship everything starting now to meet the christmas period.  but the current climate is cold for the freight industry. 

[Kangadrool]

The problem with shipping is always high cost of capital investment just like airline.

 

The shipping business has been down since 2008. Prior to that, it enjoyed a short boom. That's another characteristics of shipping - short boom, long doom caused by opportunists (many non-shipping people jumping into the bangwagon) who get into the business when the market is up, only to realise the shits when there's a sudden over supply of capacity.

 

But, if you think you can get cheap rates and excellent service from shipping lines during this lull period, you are in for a shock. The rates for certain modes and certain trades are quoting ridiculous freight and if you think you can get 5-star service from shipping lines, think again. It's more of a Sim Lim Joker Chew's level of service.

 

 

[Fcw75]

I worry for coffee shops.

 

Last time people go there and talk nonsense for hours.

 

Now they just post online.

 

Somemore now can only drink beer and talk nonsense until 1030pm nia.

[Kangadrool]

So the lawmakers assume those who drink until 1029 hrs to be mentally and physically capable to go home unaided.

 

Somemore now can only drink beer and talk nonsense until 1030pm nia.

 

[BanCoe]

isn't fuel cheaper now? hanjin might be a victim of carrying too much hedge on fuel previously and paying thru their nose for fuel. cost of ship already sunken, so can't be that.

 

business point of view, load is dropping, but we in this industry, know that those major electronics manufacturer will ship everything starting now to meet the christmas period. but the current climate is cold for the freight industry.

Fuel has been low for last almost 2 years ... Contracts must have expired now long time already ... It's just that the so called Baltic dry index at low tail for last 2 years and commodity prices low and dearth of empty space has forced shippers to squeeze the liners , also ships seem to be getting bigger n faster n maybe will die younger too now in view of lagging commodity prices

[BenTong]

Lots of good analysis here. But can ask how to make $$$ from this huh? Any shipping stock advice?

[Kusje]

isn't fuel cheaper now? hanjin might be a victim of carrying too much hedge on fuel previously and paying thru their nose for fuel. cost of ship already sunken, so can't be that.

 

business point of view, load is dropping, but we in this industry, know that those major electronics manufacturer will ship everything starting now to meet the christmas period. but the current climate is cold for the freight industry.

Won't lower fuel prices also increase capacity? Shops can move faster.

[Voodooman]

Won't lower fuel prices also increase capacity? Shops can move faster.

It is a race to the bottom, lower fuel cost, cut freight rates. Most players are not making money with Baltic at current level.

[BanCoe]

Lots of good analysis here. But can ask how to make $$$ from this huh? Any shipping stock advice?

Still a lot of overcapacity .... Maybe cos things are much more lighter and smaller people might be using more Aircargo this days too

 

Even some port expansion projects have mothballed and even abandoned in Australia

[Keithchue]

Won't lower fuel prices also increase capacity? Shops can move faster.

lower fuel prices means also, products cant sell at cut throat prices now, forcing elimation of freight, so most items locally produced.

[Blueray]

NOL to be delisted from SGX on Tuesday

 

SINGAPORE: About three months after French containing shipping firm CMA CGM acquired more than 90 per cent of Neptune Orient Lines (NOL), the Singaporean company is set to be delisted from the Singapore Exchange (SGX). 

 

CMA CGM said in a press release on Monday (Sep 5) that NOL had obtained the necessary waivers and approval from SGX for the delisting, which will take effect at 9am on Tuesday. 

.....

 

http://www.channelnewsasia.com/news/business/nol-to-be-delisted-from-sgx-on-tuesday/3100816.html

Edited September 5, 2016 by Blueray

[Porker]

SEOUL—South Korea’s Hanjin Shipping Co. said it would take further legal action in countries beyond the U.S. to protect its ships and other assets from being seized by creditors.

Hanjin, the world’s seventh-largest container operator by capacity, plans to file for court protection in about 10 countries, including Canada, Germany and the U.K., this week, Korea’s Financial Services Commission said Monday.

The troubled shipping line aims to expand the scope of its court protection as soon as possible, with plans to pursue legal action in as many as 43 countries, according to the financial regulator.

A Hanjin spokeswoman said the company will make its best effort to prevent ship seizures and protect assets abroad.

The company filed for bankruptcy protection Friday in U.S. Bankruptcy Court in Newark. N.J. under chapter 15, which deals with international insolvency matters, A court hearing is scheduled for Tuesday.

The injunction request comes after the company filed for bankruptcy protection in a Seoul court last week after its creditors discontinued a financial lifeline after years of financial assistance failed to keep it afloat.

Hanjin is currently the largest shipping company in Korea, operating approximately 60 regular lines world-wide, with 140 container or bulk vessels, according to court papers. It transports over 100 million tons of cargo a year.

Its failure would be the largest in the history of the container-shipping industry, dwarfing all previous carrier bankruptcies. Since Hanjin called in the bankruptcy lawyers, the refusal of ports to handle its cargo has stranded more than 50 ships at sea and more than half a million containers, according to the company.

Shares of Hanjin slumped by the daily limit of 30% in Seoul on Monday, as trading resumed after the shipper filed for court receivership last week.

With Hanjin heading for the industry’s worst-ever bankruptcy, terminal operators, ports and cargo handlers around the world haverefused to handle the company’s cargo for fear they won’t get paid.

Several Hanjin ships have already been seized by creditors or turned away from ports in the U.S., China, Canada, Spain and elsewhere with terminals refusing to work with the company’s cargo.

[Ktglfc]

NOL to be delisted from SGX on Tuesday

 

SINGAPORE: About three months after French containing shipping firm CMA CGM acquired more than 90 per cent of Neptune Orient Lines (NOL), the Singaporean company is set to be delisted from the Singapore Exchange (SGX). 

 

CMA CGM said in a press release on Monday (Sep 5) that NOL had obtained the necessary waivers and approval from SGX for the delisting, which will take effect at 9am on Tuesday. 

.....

 

http://www.channelnewsasia.com/news/business/nol-to-be-delisted-from-sgx-on-tuesday/3100816.html

 

 

Finally ....

[Kangadrool]

No Orientals Left.

 

Finally ....

 

[BenTong]

Interesting ... If this goes on.. PSA will chap lap. No biz from shipping..

Edited September 5, 2016 by BenTong

[Ktglfc]

No Orientals Left.

 

One by one, our local companies will be makan by foreigners ....

[Voodooman]

lower fuel prices means also, products cant sell at cut throat prices now, forcing elimation of freight, so most items locally produced.

With freight so low, local businesses have lost some home ground cost advantage to foreign exporters from far away places.