SEOUL, SOUTH KOREA--Hanjin Shipping Co.—one of the world’s top 10 largest container shipping line companies—recently filed for bankruptcy protection in Korean Court and a bankruptcy stay of litigation in U.S. Federal Court. Due to this bankruptcy filing, creditors across Asia are aggressively seeking to obtain Hanjin assets for which they have a lien, such as container ships. And due to this, there will likely be major congestion in ocean shipping lanes globally.
To-date, this is the largest bankruptcy of its kind amongst ocean carriers. So of course, this has caused much anxiety amongst logistics teams of all sorts who import and export materials internationally. Please be advised that ChemSpec does not presently have any product that is being transported by Hanjin Shipping. ChemSpec also strives to maintain safety stock inventory to insulate our customers against these types of unforeseen circumstances. Consequently, in the short term, there is no reason for concern with ChemSpec product arriving into the NAFTA Region, specifically from Asia.
This bankruptcy however will likely have a negative impact across all industries in the long-term. Hanjin controlled a large portion of ocean shipping, and with their operations coming to a halt, this causes a large demand for such shipping services with much less supply. Thus, ships and ports will likely become congested due to this lack available freight. Additionally, as companies hit the “peak season” for shipping rates, this will likely cause a spike in freight costs.
AhemSpec strives to keep its customers informed of issues that may impact our pricing. As this situation becomes clearer, we will do our best to ensure transparency in freight costs that impact us, and in turn, will impact our customer base.
If you have questions or concerns at this time, please feel free to reach-out to your respective sales representative or contact ChemSpec directly.