Hanjin Bankruptcy Demonstrates Fragility of Ocean Freight Market Prior to “Black November”

NC State SCRC

Since Hanjin Shipping Company of South Korea filed for bankruptcy protection last week, the WSJ reports that dozens of ships carrying more than half a million cargo containers have been denied access to ports around the world, as there are doubts as to who will pay the docking fees, container-storage, and unloading bills.

Hanjin's Insolvency Leaves Few Options

Elementum

The only thing left to do for South Korea’s largest container carrier was to seek for court receivership on Thursday, just a day after it filed for bankruptcy. The world’s seventh-largest container line is no longer accommodating any customers, and its existing clients are scrambling to divert their freight to other carriers. Meanwhile, to cushion the impact, the South Korean government is reaching out to overseas carriers for assistance.

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This Week in Logistics News (September 12-16, 2016)

Talking Logistics

New Transport Mode to Redefine Freight Movement. July 2016 Freight Transportation Services Index (TSI). According to a Reuters report: As of Wednesday, of Hanjin’s 97 container ships, 36 were waiting outside of overseas ports, according to South Korea’s finance ministry. Of the remainder, 37 had yet to unload and planned to return to Korea, and 24 had unloaded in Korea and elsewhere, the ministry said.

A great leap forward: Quintiq joins Dassault Systèmes

DELMIA Quintiq

We count among our loyal customers top companies in more than 30 industries, including express delivery, steel production, energy, freight rail and retail. We will have offices in Japan, South Korea, India and South America, and more. At Quintiq, news is often greeted with excitement. That’s because it is usually great news. A new customer, a new world record, more awards and recognition, yet another year of continuous profit and growth.

The Coronavirus Is Shattering Traditional Supply Chains

ivalua

And even if an order from an overseas supplier were to be filled, delivery issues would be compounded by the declining number of air and ocean freight options to move products into the U.S. On February 4, Hyundai Motors announced suspension of production at seven of its plants in Korea. By mid-March, it had become difficult to keep track of what seemed like the high-speed unravelling of the world’s economy and its means of social connection.

China Exports Rebound Even as Western Markets Face Lockdown

Logistics Bureau

The huge build-up of containers at China’s docks has created a major ocean freight imbalance, with a shortage of cargo in US and European ports and a shortfall in boxes needed by Western exporters to ship products to other parts of the world. When it comes to air freight, global capacity is down 22 percent compared to last year, with further declines expected. Ocean Freight. Air Freight. Ocean Freight. Air Freight. Ocean Freight. Air Freight.

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Doing Business in China

QAD

China moved 19.806 billion ton-km of freight by air in 2015. Hong Kong, Japan and South Korea. Import partners include South Korea, Japan, the U.S., China boasts one of the oldest, most advanced civilizations on Earth, with a history going back as far as 2070 B.C. Though, even as the country has experienced great economic and infrastructure growth, over its history, alternating periods of civil unrest, famine and foreign occupation have plagued China.

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Five Key Takeaways From JOC’s TPM 2016

Freightos

overtaking South Korea at 2nd spot for Asian supplier of containerized goods to U.S ( from IHS ). Venture Capital Loves Freight. The industry talk is now on how consumer e-commerce attitudes are starting to impact freight. For freight companies to be part of this future, they must re-work their trans-Pacific logistics strategy (and more) to emulate the pioneers – Walmart, Amazon and Alibaba. BETTER INTERNATIONAL FREIGHT HAS ARRIVED.

Top 25 3PL warehousing companies in 2020 (by revenue)

6 River Systems

A behemoth in the logistics industry, UPS has operations in shipping, air freight, trucking, last-mile delivery and drone delivery. FedEx Corporation FedEx , previously known as Federal Express, is an American multinational freight company founded in 1971 as a system for urgent deliveries.

Barriers weakening world trade growth

EFT

This deceleration will be particularly strong in Asia (except for China): Index values for India, Japan and South Korea have dropped by eight, six and five points respectively compared to the previous release of the GTB in September. The worldwide deceleration of trade growth is attributable to declines in both containerized ocean freight and international air trade – with last year being a peak year with exceptionally high volumes.

The need to know

EFT

South Korea’s Hyundai Motor Co started construction on a research and development centre in Singapore on Tuesday that will house a small-scale electric vehicle production facility. Uber launches medicines delivery service in South Africa.

Top 10 Global Supply Chain Risks

Supply Chain Game Changer

Risks exist in land, air and ocean freight. Poor grasp of hazards in your supply chain will increase freight spend and diminish brand value. For instance, the bankruptcy of South Korea’s 7th largest shipping company (Hanjin Shipping) led to a dramatic reduction in global supply chain shipping capacity. Extreme weather represents one of the most significant risks to ocean freight on the globe. Proactive Risk Management Is Key to Ocean Freight Success.

How COVID-19 is Battering Australia’s Imports and Exports

Logistics Bureau

South Korea, $28.7 Freight transport services: Shipping and air freight are among the services most badly affected by the Coronavirus epidemic, and Australia will not be able to avoid the knock-on effect. Figures from the Australian Bureau of Statistics show that China is Australia’s largest trading partner by far, with two-way trade amounting to $194.6 billion (AUD), or 24.4

The need to know

EFT

DP World to acquire 60% of Korea's UNICO Logistics. Dubai-based global ports operator DP World has agreed to acquire a 60% stake in South Korea-based UNICO Logistics Co, DP World said in a statement on Monday. The need to know from Reuters global network of journalists.

Lessons from Hanjin: is Your Supply Chain Still at Risk?

Elementum

T he world’s seventh largest freight carrier is still treading water as its ships fail to find a place to dock. South Korea’s Hanjin is stuck (literally). A South Korean court has petitioned Korea’s state-owned bank to help fund the company. They hoped to push rates low enough that smaller carriers would be forced into bankruptcy, and at the same time made sure their ships were full by sharing freight.

Doing Business in Malaysia

QAD

Located in Southeast Asia, Malaysia is bordered by Thailand, Borneo, Indonesia, Brunei and the South China Sea. The country moves over 2 billion mt-km of freight per year. . The primary import partners were China, Singapore, US, Japan, Thailand, South Korea and Indonesia.

Helping You Plan Ahead During the Coronavirus Outbreak

CH Robinson Transportfolio

Similar to China, airlines have canceled majority of passenger flights in and out of Europe and South Korea due to safety concerns and lack of travel demand. If you haven’t already, start discussions with your freight forward around production planning and forecasting. The coronavirus outbreak, which is severely affecting business operations around the globe, was recently declared a global pandemic by the World Health Organization.

Four Risk Mitigation Actions for Weathering a Stormy Market

TMC

The recent decision by Japan’s three largest container companies to merge their shipping operations is yet another symptom of the volatility that is roiling the freight business. It’s one of many changes that are reshaping the struggling container trades, which are still feeling shock waves from the decision by South Korea’s Hanjin Shipping Company to file for bankruptcy in August. Assess your network’s footprint and freight flows.

Smart Supply Chains Adapt to Overcome COVID-19 Challenges

Logistics Bureau

These smart operators include: John Deere: The agricultural vehicle manufacturer says it expects to spend $40 million (USD) on expedited freight to ensure there is no disruption in supply. Examples are: Samsung Electronics , which is shifting part of its domestic phone production to Vietnam due to the rapid advance of COVID-19 in South Korea.

The need to know

EFT

Coronavirus outbreak at South Korea e-commerce warehouse drives spike in new cases. South Korea reported the highest daily number of new coronavirus cases in 49 days on Wednesday, as one of the country’s largest e-commerce companies battled an outbreak linked to a now-shuttered logistics facility. Freight-forwarder Kuehne+Nagel (KNIN.S) . The need to know from Reuters global network of journalists.

Coronavirus COVID-19 Supply Chain Update

Transplace

With the estimated average ocean freight of $1000 per TEU, ocean carrier revenue loss adds up to $1.9b. In central and south China, recovery is lower at 20 to 40% capacity as many drivers are from Hubei and surrounding provinces where the epidemic is more widespread. Carmakers and electronic manufacturers in South Korea and Japan are reporting production line shutdowns. South Carolina ports estimate 15% decline in port volumes thru April.

Harvey’s Impact on the Global Supply Chain: The Role of Analytics

NC State SCRC

For instance, when Typhoon Hato hit South China last week, several electronic suppliers were impacted. It could be extra freight and workforce overtime and probably other categories of cost which would accrue as an associated loss risk to any event. South China will be exposed to hurricanes, and South Korea which is next North Korea (and the location of production of 50% of the world’s semiconductors) is in a precarious situation.

Distribution in China takes a detour

Supply Chain Movement

In 2012 the company decided to seriously push for success in the Chinese, Japanese and South Korean markets. From there the pushchairs are shipped to local DCs in China, Japan and South Korea for crossdocking and transport to retailers. We’ve been producing this equipment in China since 2008 and for many years we shipped everything as air freight from Suzhou to our global DC in Europe.

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Why Singles Day Will Become A US Sales Festival

Freightos

Supply and demand on US-China exports, combined with historically low freight prices, meant that, shipping a 40′ foot container from the Port of Long Beach to the Port of Shenzhen costs less than the price of a mid-range MacBook. Supply and demand on US-China exports, combined with historically low freight prices, meant that, shipping a 40′ foot container from the Port of Long Beach to the Port of Shenzhen costs less than the price of a mid-range MacBook.

Reversing globalisation: Near shoring, reshoring or staying put?

EFT

So, a lot of the manufacturing that is happening, for example, in Japan and Korea, depends on parts that come out of China. We have seen Chinese companies move to factories to South East Asia. That might be China, or South Korea, or Japan, or might now possibly be Vietnam. If China goes into lockdown, you can still go to South Korea. We have been living through remarkable times when it comes to manufacturing, technology and trade.

What Your Global Forwarder Must Know about Importing to China

CH Robinson Transportfolio

Most imports come from Europe, Association of Southeast Asian Nations (ASEAN), South Korea, Japan, and United States, respectively, based on import value. Most rely on an agency network relationship to move the freight to China only. To choose suitable freight forwarding companies in China, be sure they have these 5 capabilities: Deep knowledge about the import/export procedure.

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Chill Pill Has a Whole New Meaning for Pharma Supply Chain

Aera Technology

Consider the recent bankruptcy of one of the world’s largest marine shipping companies – South Korea’s Hanjin Shipping Co. marshals after a fuel supplier filed suit against the freight company.” The pharma supply chain can be incredibly complex with new molecular entities taking as long as a decade to get to market.

Doing Business in Japan

QAD

Japan has more than 175 airports; 142 with paved runways and most of them capable of handling freight planes and jets. There are 23 air carriers registered in the country, and they moved 8,868,745,000 mt-km of freight in 2015. China, South Korea, Hong Kong and Thailand. Australia, South Korea and Saudi Arabia. Japan has been an economic power throughout much of its history, despite a major economic downturn starting in the 1990s.

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Letter from the CEO: Coronavirus Market Update

Transplace

Spot market rates are increasing for freight going from Mexico to the California, Washington, and Oregon areas. Transshipment ports such as Busan Korea (5th busiest box port) are struggling with congestion due to all the volumes of containers discharged at intermediary ports while carriers were diverting vessels and offloading refrigerated containers due to lack of plugs available at Chinese ports. Letter from the CEO: Coronavirus Market Update.

36 innovative companies re-inventing and rethinking supply chain and logistics

6 River Systems

Bed Bath & Beyond @BedBathBeyond Bed Bath & Beyond has discovered a way to save millions of dollars on freight over the next few years, thanks to a new 755,000 square-foot distribution facility slated to open in the fall of 2019. The company is also focusing on freight savings, expanding its TMS to include more destinations and vendors, shipping more volume through a consolidated network (instead of direct to store) and working with suppliers on various savings strategies.

How to be Productive during the Global Lockdown: The ThroughPut Playbook to Maintain your Output Levels

ThroughPut

As of right now, top lines have been essentially wiped out for industries like air transportation, freight, gastronomy, tourism, travel, and many more. South Korea has “flattened the curve” in part with mass drive-through-testing in record time and volumes, and high-throughput tests are finally becoming more available in the US, even if the testing kits and support materials are still in short supply and erratic in distribution.

Strong demand and tight supply define industrial property sector in markets around the world

EFT

Korea E-commerce retailers' use of third-party logistics to distribute their goods is increasing. year-over-year, according to Statistics Korea. The lease-up period for newly built logistics facilities has been shortened by nearly half, from 12 to six months after completion, as logistics freight volume has swelled in recent years. "A Demand for industrial property across the globe continues to show remarkable strength in most markets.

What’s Looming for Transpacific Ocean Shipments this Peak Season?

CH Robinson Transportfolio

In fact, JOC.com sites many Southeast Asia countries—including India, South Korea, Taiwan, Thailand, and Indonesia—have significantly grown their imports into the United States, anywhere from 13-37% compared to last year. Robinson’s local experts in offices around the globe use this kind of information to help manage peak season ocean freight and resolve problems in real time. Diversification in your carrier selection lowers your risk of freight delays or cancellations.

This Week in Logistics News (January 22-26, 2018)

Talking Logistics

Alibaba’s logistics arm works on driverless technology as automation pace picks up (South China Morning Post). Air freight capacity concerns prompt new forwarder strategies (Lloyd’s Loading List). Alstom to test automated freight train in the Netherlands (Reuters). Drones, driverless vehicles, and global trade all made the headlines in this week’s supply chain and logistics news… Teamsters Tell UPS: No Drones or Driverless Trucks (WSJ – sub. req’d).

5 Ways To Improve Your Import-Export Business Now

EMERGE App

In Japan and South Korea, it’s the LINE messaging app. And for Europe and South-East Asia, it’s definitely WhatsApp. Finally, you can reduce some of the shipping costs by using your own freight forwarder. Introduction. As an importer and exporter, your business is subject to the ebb and flow of global consumer sentiment and geo-national politics.