Shippers suffer from driving down rates with Hanjin's demise
THE collapse of Hanjin Shipping is likely to serve as a wakeup call to shippers who now discover that pushing for the lowest possible freight rates can have serious consequences.
With 400,000 containers stranded on ships and ports around the world many shippers are struggling to recover their cargoes, reported Colchester England’s Seatrade Maritime News.
"This will get the shippers to reflect on the price they are paying - US$200 for 25,000 miles of sea freight?it's absurd," Neptune Orient Lines CFO Serge Corbalm told the Marine Money Asia conference. "This [Hanjin crisis] is the price of this. The price has to be paid."
Spot rates on the transpacific trade, where Hanjin controlled a seven per cent market share, have soared 50 per cent in the wake of the Korean container shipping line filing for bankruptcy protection.
OOCL chief financial officer Michael Fitzgerald pointed out that when there is disruption companies reflect on their behaviour. "For the next few months people will look more closely at the financial health of their counter parties," he said.
THE collapse of Hanjin Shipping is likely to serve as a wakeup call to shippers who now discover that pushing for the lowest possible freight rates can have serious consequences.
With 400,000 containers stranded on ships and ports around the world many shippers are struggling to recover their cargoes, reported Colchester England’s Seatrade Maritime News.
"This will get the shippers to reflect on the price they are paying - US$200 for 25,000 miles of sea freight?it's absurd," Neptune Orient Lines CFO Serge Corbalm told the Marine Money Asia conference. "This [Hanjin crisis] is the price of this. The price has to be paid."
Spot rates on the transpacific trade, where Hanjin controlled a seven per cent market share, have soared 50 per cent in the wake of the Korean container shipping line filing for bankruptcy protection.
OOCL chief financial officer Michael Fitzgerald pointed out that when there is disruption companies reflect on their behaviour. "For the next few months people will look more closely at the financial health of their counter parties," he said.