AS Survey: Shippers highly exposed to Hanjin collapse

A survey conducted by American Shipper revealed nearly three in four beneficial cargo owners and intermediaries currently have cargo on Hanjin vessels, and most are predicting rates will rise in the short- and long-term.    More than 72 percent of beneficial cargo owners and ocean intermediaries surveyed by American Shipper Thursday and Friday said they currently have cargo aboard vessels belonging to the beleaguered liner carrier Hanjin Shipping.
   The South Korean shipping line filed for receivership Wednesday, setting off pandemonium in global container trades. Reports of soaring spot market rates on both the transpacific and Asia-Europe trades were widespread, and more worryingly, vessels are being prevented from berthing or unloading at ports across the globe. Some container terminals are refusing to release Hanjin containers until they have been paid in full.
   American Shipper’s survey, which includes responses from 288 companies as of Friday mid-morning, includes 81 beneficial cargo owners (BCOs), 50 non-vessel-operating common carriers (NVOCCs), 35 freight forwarders, 34 carriers and 17 consultants.
   Data collected shows that companies are overwhelmingly concerned about the impact that Hanjin’s collapse could have on its current partners in the CKYHE Alliance – COSCO Container Lines, “K” Line, Yang Ming and Evergreen Line. Forty-seven percent of respondents said they are very concerned about Hanjin’s ordeal impacting the CKYHE Alliamce, while another 34 percent said they are somewhat concerned.
   The chart above shows that in terms of how Hanjin’s situation might impact rates, 45 percent of BCOs and intermediaries said they were somewhat concerned rates will rise in the long term, while 37 percent were very concerned, 15 percent were not concerned at all and 3 percent were unsure.
   Fifty-two percent of BCOs surveyed said they are very concerned rates will rise in the short-term, and another 40 percent said they are somewhat concerned.
   Among intermediaries, 56 percent surveyed said they are very concerned about short-term rate hikes and 40 percent are very concerned about long-term increases. Another 34 percent of intermediaries are somewhat concerned about short-term increases and 47 percent are somewhat concerned about Hanjin’s move affecting long-term rates.
   Of all those surveyed, 38 percent said they believe the most likely outcome of Hanjin’s predicament is that its assets will be liquidated and acquired by multiple carriers, as illustrated in the chart above. The second most likely outcome, according to respondents, is that Hanjin is merged with compatriot carrier Hyundai Merchant Marine (HMM), with 33 percent predicting that scenario. Only 10 percent said they believe Hanjin will be able to restructure and continue operations, and only 14 percent said they thought Hanjin would be acquired by a carrier other than HMM.
   Lastly, 70 percent of BCO/intermediary respondents said that vessel sharing agreements and alliances should have a single source of information for shippers to minimize confusion during times of crisis, compared to 13 percent who didn’t agree, and 17 percent who were uncertain.
   The anonymous poll remains open.