Ocean shipping companies around the world were shocked at the sudden collapse of South Korea’s Hanjin Shipping [HJSC] last year. Witnessing the world’s seventh largest container line go bankrupt; with a cargo worth US$14 billion stranded in ports and at sea; was a wake-up call for all freight companies.
Repercussions
- Mergers will be on the rise. Increasingly, smaller to medium sized carriers will avoid going under by merging with larger operators, thus becoming more stable.
- Distinguishing opportunities from threats by using better algorithms to predict the behavior based on previous patterns will become essential. The HJSC bankruptcy lead to a fundamental rethink of how business should be done in terms of managing the risk.
- Company splits – splitting the container shipping segment away from other divisions like bunkering or non-maritime interests such as those of Maersk – allows companies to better focus on their differing markets.
- Rate changes – most probably increases – will emerge from the diverse and competitive environment.
If your business involves international ocean shipping, you may want to become a member of USSA. The benefits of membership include:
- Reduced shipping cost
- State of the art contract management technology
- Greater industry knowledge
- More contract choices
- Broader negotiating skills
- Low volume trade lanes support
- Export Trading Certificate protection
To learn more about us, please contact us electronically or call (979) 793-7375.
