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Asian players evaluate the impact of Hanjin’s bankruptcy protection

by ChemOrbis Editorial Team - content@chemorbis.com
  • 07/09/2016 (05:20)
Asian players are evaluating the potential impact from recent news that South Korea’s biggest shipping line, Hanjin Shipping Co. filed for bankruptcy late last week. Some players report seeing no impact from the recent banktrupcy while others are concerned about higher freight costs and supply issues.

An agent in Malaysia reported that they have not been affected by the shipping company’s decision as a result of paying extra attention not to use their service. The agent said he was expecting this based on the company’s financial results.

A trader in Vietnam reported they are not working with the company but noted, “We heard that Hanjin promised to ship cargoes to their customers, so we don’t think there will be any problem despite filing for bankruptcy protection.”

A distributor in China opined, “We have seen no impact on prices regarding this issue and we think mostly European countries will be affected, but only temporarily. They can always switch to another shipping company.”

On the other hand, a producer in China who believes the bankruptcy protection filed by Hanjin will affect the market says, “We heard shipments from Korea to China are not affected, but shipments from Korea to the US and Europe will be affected.”

A woven bag converter in the Philippines said that possible effects on supply might be seen only after the end of September. “Even our suppliers are looking for higher freight costs, blaming Hanjin,” added the converter.

A producer in Singapore reported that a great number of cargoes bound for China got stuck in Singapore, which will cause supply disruptions in the short term.
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