{"id":270,"date":"2016-09-16T09:00:35","date_gmt":"2016-09-16T16:00:35","guid":{"rendered":"http:\/\/67.192.94.222\/blog\/?p=270"},"modified":"2016-09-20T15:08:24","modified_gmt":"2016-09-20T22:08:24","slug":"how-the-hanjin-bankruptcy-will-affect-shipping-in-the-us","status":"publish","type":"post","link":"https:\/\/www.shipmynt.com\/blog\/how-the-hanjin-bankruptcy-will-affect-shipping-in-the-us\/","title":{"rendered":"How the Hanjin Bankruptcy Will Affect Shipping in the US"},"content":{"rendered":"<p>Near the end of August, Hanjin Shipping filed for bankruptcy. The company is South Korea\u2019s largest shipper and <a href=\"http:\/\/www.cnbc.com\/2016\/09\/12\/hanjin-itll-take-more-than-crisis-to-fix-shippings-capacity-problem-expert.html\" target=\"_blank\">accounts for 3% of the global shipping<\/a> market share. Carriers, brokers, and other shipping industry companies must now consider the effects of Hanjin\u2019s bankruptcy on the global supply chain.<\/p>\n<p>&nbsp;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-348\" src=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage2_091616.jpg?resize=660%2C337&#038;ssl=1\" alt=\"\" width=\"660\" height=\"337\" \/><\/p>\n<h2>The Impact of Hanjin on US Trade and Consumers<\/h2>\n<p>When such a large shipping company files bankruptcy, the effects ripple throughout the global economy. The US shipping market and global market will feel the effects as Hanjin continues to apply for protections in export destinations to offload preexisting cargo shipments. Here are some of the outcomes that US consumers and supply chain players may experience as the bankruptcy process continues:<\/p>\n<ul>\n<li>Customers will experience delays in certain product orders. Many US courts are currently allowing Hanjin ships to offload cargo, but some remain offshore as they wait for shipping request approvals. As a result, customers waiting for cargo may experience delays as retailers wait for distribution.<\/li>\n<\/ul>\n<ul>\n<li>The entire industry will experience temporary price spikes. Hanjin was responsible for <a style=\"color: #f68031;\" href=\"http:\/\/www.hanjin.com\/hanjin\/CUP_HOM_1700.do?sessLocale=en\" target=\"_blank\">transporting more than 100 million tons<\/a> of products every year. Any delay in the supply chain affects supply and demand\u2014the basic building blocks of pricing. Industry professionals expect temporary price spikes to affect oil and consumer goods heading into the holiday season. Samsung in particular relies on the Hanjin shipping brand <a style=\"color: #f68031;\" href=\"http:\/\/www.usatoday.com\/story\/money\/business\/2016\/09\/07\/hanjin-shipping-seeks-us-bankruptcy-protection\/89948440\/\" target=\"_blank\">to transport millions of dollars\u2019 worth<\/a> of visual display technology and home appliances.<\/li>\n<\/ul>\n<ul>\n<li>Individual US companies may experience repercussions. At least three transportation companies <a style=\"color: #f68031;\" href=\"http:\/\/seekingalpha.com\/article\/4003932-hanjin-bankruptcy-mean-shipping\" target=\"_blank\">may experience adverse business effects<\/a> as a result of the bankruptcy filing. Danaos, Navios Maritime Partners, and Seaspan are all connected to Hanjin\u2019s services. For Danaos and Navios Maritime Partners, the filing comes at a precarious financial time. These businesses and others may experience financial difficulty directly associated with Hanjin Shipping\u2019s bankruptcy.<\/li>\n<\/ul>\n<ul>\n<li>Hanjin may foreshadow a trend in the supersaturated shipping industry. The shipping industry <a style=\"color: #f68031;\" href=\"http:\/\/qz.com\/778219\/how-shipping-hubris-and-the-korean-government-broke-hanjin-shipping-stranded-its-sailors-and-mucked-up-holiday-retail\/\" target=\"_blank\">may lose billions of dollars<\/a> in 2016 due to an overcapacity of containers. The bank associated with Hanjin\u2019s restructuring may have rejected an application for loan restructuring in an effort to consolidate the industry in South Korea. Other countries and shipping services may experience the same financial difficulties as long as the industry is oversaturated. While other companies may not experience bankruptcy, consolidations and mergers may influence overall outcomes in the industry worldwide.<\/li>\n<\/ul>\n<ul>\n<li>US retailers may \u201cgo local\u201d to avoid international shipping risks. To mitigate the risk of insolvency in the global trade market, the delays following this bankruptcy may serve as an impetus for US retailers to choose local suppliers. Focusing on local suppliers may allow retailers to manage risk and control price fluctuations more easily.<\/li>\n<\/ul>\n<ul>\n<li>Businesses not associated with Hanjin may experience side effects too. Without Hanjin\u2019s cargo supplies, other shipping companies will need to adjust to pick up the slack. Large companies like Amazon <a style=\"color: #f68031;\" href=\"http:\/\/fortune.com\/2016\/09\/09\/hanjin-cargo-crisis\/\" target=\"_blank\">may effectively negotiate agreements<\/a> with other shippers and jeopardize smaller business shipments.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"349\" data-permalink=\"https:\/\/www.shipmynt.com\/blog\/contracts-youll-need-as-a-freight-broker\/shipmynt_blogpostimage_122116\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage_122116.jpg?fit=900%2C601&amp;ssl=1\" data-orig-size=\"900,601\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage_122116.jpg?fit=660%2C441&amp;ssl=1\" class=\"aligncenter size-full wp-image-349\" src=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage3_091616.jpg?resize=660%2C371&#038;ssl=1\" alt=\"\" width=\"660\" height=\"371\" \/><\/p>\n<h2>Handling Shipping Chaos After Hanjin\u2019s Bankruptcy<\/h2>\n<p>For now, businesses that rely on international shipping must expect the best and prepare for the worst. Understanding the real and possible outcomes of Hanjin\u2019s financial crisis can help businesses adjust their shipping practices and protect their own supply chains. Talk with your own shippers, and develop a contingency plan to prepare for shipments around holiday season.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Near the end of August, Hanjin Shipping filed for bankruptcy. The company is South Korea\u2019s largest shipper and accounts for 3% of the global shipping market share. Carriers, brokers, and other shipping industry companies must now consider the effects of Hanjin\u2019s bankruptcy on the global supply chain. &nbsp; The Impact of Hanjin on US Trade &hellip; <a href=\"https:\/\/www.shipmynt.com\/blog\/how-the-hanjin-bankruptcy-will-affect-shipping-in-the-us\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">How the Hanjin Bankruptcy Will Affect Shipping in the US<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[6],"tags":[],"class_list":["post-270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage_091616.jpg?fit=900%2C600&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7fVNJ-4m","jetpack-related-posts":[{"id":187,"url":"https:\/\/www.shipmynt.com\/blog\/best-traits-to-consider-when-choosing-shippers\/","url_meta":{"origin":270,"position":0},"title":"Best Traits to Consider When Choosing Shippers","author":"SHIPMYNT Customer Service","date":"July 29, 2016","format":false,"excerpt":"Recently, the economy has shifted the balance of shippers and carriers to such a degree that there are now more shippers than carriers. This means that carriers now have more choices regarding shipping companies. Not all shipping companies have the most-desired qualities for a business partner, however. Choosing a shipping\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/08\/shipmynt_blogpostimage3_073116.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/08\/shipmynt_blogpostimage3_073116.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/08\/shipmynt_blogpostimage3_073116.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/08\/shipmynt_blogpostimage3_073116.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/08\/shipmynt_blogpostimage3_073116.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":320,"url":"https:\/\/www.shipmynt.com\/blog\/handling-transit-delays-tips-freight-broker\/","url_meta":{"origin":270,"position":1},"title":"Handling Transit Delays: Tips for the Freight Broker","author":"SHIPMYNT Customer Service","date":"November 9, 2016","format":false,"excerpt":"We live in a world of instant gratification\u2014one world where Americans are always searching for ways to make shopping faster than before. For example, you can now make purchases with your smartphone just by scanning your fingerprint. \u00a0 This instant checkout works well in many cases, but when it comes\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":131,"url":"https:\/\/www.shipmynt.com\/blog\/131\/","url_meta":{"origin":270,"position":2},"title":"Our Mission at SHIPMYNT","author":"SHIPMYNT Customer Service","date":"July 12, 2016","format":false,"excerpt":"Our mission at SHIPMYNT is simple: to make\u00a0it easier\u00a0for you\u00a0to find\u00a0trusted logistics partners to work with. \u00a0 It all\u00a0started with\u00a0the belief\u00a0that it shouldn't have to be hard to find quality\u00a0shipping partners. There should be an easy-to-use load board and tracking system available to everyone in the logistics industry at an\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_071216.jpg?fit=725%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_071216.jpg?fit=725%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_071216.jpg?fit=725%2C400&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_071216.jpg?fit=725%2C400&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":177,"url":"https:\/\/www.shipmynt.com\/blog\/insider-tips-for-getting-the-most-out-of-shipmynt\/","url_meta":{"origin":270,"position":3},"title":"Insider Tips for Getting the Most Out of SHIPMYNT","author":"SHIPMYNT Customer Service","date":"July 22, 2016","format":false,"excerpt":"You've\u00a0signed up for our free 90-day trial, and have maybe even looked around your dashboard a bit. To help you take the next steps and get the most out of your SHIPMYNT account, take a look at these insider tips and tricks below! Set Up Notifications Perhaps the most helpful\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_072216.jpg?fit=725%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_072216.jpg?fit=725%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_072216.jpg?fit=725%2C400&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage_072216.jpg?fit=725%2C400&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":258,"url":"https:\/\/www.shipmynt.com\/blog\/thank-you-to-truck-drivers-in-honor-of-national-truck-driver-appreciation-week\/","url_meta":{"origin":270,"position":4},"title":"Thank You to Truck Drivers in Honor of National Truck Driver Appreciation Week","author":"SHIPMYNT Customer Service","date":"September 13, 2016","format":false,"excerpt":"Sunday, September 11 kicked off National Truck Driver Appreciation Week. At SHIPMYNT, we understand the important role that truck drivers play in the supply chain. The global economy would come to a standstill without the hard work of drayage and over-the-road truckers. As transportation associations across the US celebrate truck\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage2_091316.jpg?fit=900%2C601&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage2_091316.jpg?fit=900%2C601&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage2_091316.jpg?fit=900%2C601&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage2_091316.jpg?fit=900%2C601&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":180,"url":"https:\/\/www.shipmynt.com\/blog\/find-the-best-carrier-for-your-shipments-with-these-tips\/","url_meta":{"origin":270,"position":5},"title":"Find the Best Carrier for Your Shipments with these Tips","author":"SHIPMYNT Customer Service","date":"July 26, 2016","format":false,"excerpt":"While the recent economic issues have resulted in many small carrier companies and independent operators going out of business, there are still more than a few carriers to choose from. How does a shipper choose a good carrier for their freight? What are the most important things to look for\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage3_072516.jpg?fit=1200%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage3_072516.jpg?fit=1200%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage3_072516.jpg?fit=1200%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage3_072516.jpg?fit=1200%2C801&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/07\/shipmynt_blogpostimage3_072516.jpg?fit=1200%2C801&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/comments?post=270"}],"version-history":[{"count":2,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/270\/revisions"}],"predecessor-version":[{"id":278,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/270\/revisions\/278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/media\/271"}],"wp:attachment":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/media?parent=270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/categories?post=270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/tags?post=270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}