Shipping: The Global Container Transportation Manufacture Since The Hanjin Collapse
From Wolf Street, August 11:
Overcapacity reigns equally companies splurge on the largest ships, consolidation rages, no 1 wants to dorsum off.
Our terminal comment on the High German carrier, July 9:
Shipping: What the Heck Happened to Hanjin’s Ships together with the Collapsed Freight Rates?
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Our terminal comment on the High German carrier, July 9:
Shipping: Hanjin Re/Insurance Loss Could endure $2 Billion Says Credit Suisse
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Our terminal comment on the High German carrier, July 9:
Shipping: "Welcome to the Hanjin California"
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Our terminal comment on the High German carrier, July 9:
"Hanjin Shipping Rebounds As Creditors Talk Of Funding Support Again"
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Our terminal comment on the High German carrier, July 9:
Shipping: AP Moller-Maersk Break-up, Hanjin Breakdown
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Our terminal comment on the High German carrier, July 9:
Shipping: "Following Hanjin’s Collapse, Heavily Indebted Yang Ming at Risk of Financial Trouble"
Overcapacity reigns equally companies splurge on the largest ships, consolidation rages, no 1 wants to dorsum off.
In August 2016, Hanjin Shipping Co., at the fourth dimension the world’s 7th largest container carrier, sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
Shipping: What the Heck Happened to Hanjin’s Ships together with the Collapsed Freight Rates?
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
Shipping: Hanjin Re/Insurance Loss Could endure $2 Billion Says Credit Suisse
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
Shipping: "Welcome to the Hanjin California"
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
"Hanjin Shipping Rebounds As Creditors Talk Of Funding Support Again"
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
Shipping: AP Moller-Maersk Break-up, Hanjin Breakdown
sought bankruptcy protection. It was the largest bankruptcy inwards shipping manufacture history. On Feb 2, 2017, the Seoul Bankruptcy Court declared that Hanjin Shipping would endure liquidated, equally restructuring its debts would endure “prohibitively expensive.” But only how large was this debt load?
Hanjin Shipping had originally admitted to the equivalent of $5 billion inwards debts. Once the bankruptcy courtroom got to work, in that location were most weekly announcements that to a greater extent than debt had been found, tucked away inwards nooks together with crannies of the 1 time glistening edifice. In the end, it was determined that Hanjin, when it entered receivership, genuinely had $10.5 billion inwards debts.
Hanjin had been tripped upward by, with other factors, a employment that plagues the container shipping industry: overcapacity. And despite Hanjin’s liquidation, that overcapacity is getting a whole lot worse.
As of June 2018, all of the laissez passer on xiii container carriers bar 1 had added capacity compared to a yr earlier. The lonely contrarian was Hyundai Merchant Marine (HMM), which is soon exiting the Transatlantic marketplace altogether together with equally such is eliminating capacity. But the other 12 large container carriers to a greater extent than than made upward for it. Here are some standouts:
Zimm Integrated Shipping Services (Israel) increased its capacity past times 24.5%.
Orient Overseas Container Line (Hong Kong) added 18.4%.
CMA-CGM (France) added 16.3%. It also ordered from ii state-owned Chinese shipyards nine 22,000-TEU (Twenty-foot Equivalent Unit) container carriers that volition endure the world’s largest when deliveries start adjacent year. Here is a electrical flow tape holder at 18,000-TEU. Note the tiny 40-foot containers stacked on laissez passer on (image via CMA-CGM):...
COSCO, a state-owned production of China’s “command economy,” added 12.4%.
Maersk Line, the largest carrier past times capacity, ahead of COSCO, added 10.8% inwards capacity.
ONE (Ocean Network Express), a brand-new fellowship formed from the container divisions of Japan’s laissez passer on 3 shipping companies (Mitsui-O.S.K., Nippon Yusen Kaisha together with K-Line) added 7.9%, despite many promises to the contrary.
Including HMM, the average capacity increment for these xiii already huge shipping companies was 8.5%. Including all companies, large together with small, container carrying capacity worldwide increased past times a 9.3% yr on year.
As a result, despite surging shipping inflation worldwide, the PRC Containerized Freight Index (CCFI), which tracks contractual together with spot-market rates for shipping containers from major ports inwards PRC to xiv regions roughly the world, at 821 on Friday, has non fully recovered from its barbarous collapse that bottomed out at 636 inwards Apr 2016. Before the collapse, it had ranged consistently to a higher house 1,000 together with periodically to a higher house 1,100:
Note that only similar the Baltic Dry Index, the CCFI is non a mensurate of merchandise volume, but a mensurate of how expensive (or cheap) it is to ship goods past times sea roughly the world.
Only role of the collapse of the containerized freight rates inwards 2015 together with 2016 was due to overcapacity. Another major element was the plunge of the cost of oil, together with thence of bunker, the fuel for these giant container ships.
With the CCFI good below 1,000 since 2015, piece bunker prices lead maintain been ascent since 2016 along with the costs of emission compliance, profits are beingness eroded, together with momentous changes are sweeping through the industry.
Above mentioned ONE tin endure considered 1 of the poster children for this “brave novel world”: it started operations on Apr 1, 2018 (the offset of the financial yr inwards Japan), together with during its initiative of all quarter of existence has already managed to lose $120 million.
Japanese shipping companies lead maintain a time-honored tradition of ignoring losses until they give-up the ghost likewise large to endure ignored, together with so there’s ever a large scandal followed past times an emergency bailout, merger or takeover. So a measly $120 1000000 inwards losses inwards a unmarried quarter is of no trace of piece of work to them.
AP Moller-Maersk, the raise fellowship of Maersk Line, bought Hamburg Süd from Dr Oetker KG of Deutschland for €4.3 billion. In 2013 Hamburg Süd had attempted a merger with Germany’s other shipping giant, Hapag-Lloyd, but Dr Oetker KG pulled out when a satisfactory financial packet could non endure agreed upon....MUCH MORE
Hapag-Lloyd so merged with perpetually troubled Gulf carrier United Arab Shipping Company (UASC), resulting inwards a curious ownership situation. Due to previous mergers together with portion swaps, the largest shareholder of the “new” Hapag-Lloyd is Chile’s Grupo Luksic (20.7%), followed past times 3 that each ain 14%: Kuehne + Nagel AG (Germany, run through a rhythm out fellowship inwards Switzerland); the City of Hamburg; together with Qatar’s national wealth fund, QIA. Saudi Arabia’s Public Investment Fund owns 10%. The balance is gratis float....
Our terminal comment on the High German carrier, July 9:
Hapag-Lloyd had gone through so many mergers together with divestitures that I'm non fifty-fifty certain what they ain whatever to a greater extent than although they are notwithstanding the set out 5 or vi container shipper together with through 'The Alliance' with Japan's ONE together with China's Yang Ming tin motility a box pretty much anywhere inwards the world.And previously on Hanjin:
But that's something CMA CGM tin already do, on their ain or through The Ocean Alliance. so in that location must endure another argue for the approach, perhaps efficiencies that could endure wrung out of a combination.
Shipping: "Following Hanjin’s Collapse, Heavily Indebted Yang Ming at Risk of Financial Trouble"
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