Hanjin Bankruptcy Demonstrates Fragility of Ocean Freight Market Prior to “Black November”
NC State SCRC
SEPTEMBER 9, 2016
However, the announcement should not have come as a surprise, as the ocean cargo market has been suffering for some time by a condition of overcapacity, low rates, and a flat global market. Many ship builders and ocean carriers overextended themselves while the economy was growing, and these expectations resulted in a huge amount of investment that has resulted in too many ships and carriers competing for too little cargo.