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INTERMODAL LOGISTICS

HAPPY HOLIDAYS FROM HANJIN

BARRY PARKER DISSECTS ONE THE MOST DISRUPTIVE EVENTS EVER TO

IMPACT THE INTERMODAL SUPPLY CHAIN. THERE IS MORE PAIN TO COME,

LESSONS TO BE LEARNED – AND CORRECTIONS APPLIED.

BY BARRY PARKER he Hanjin Shipping debacle, brewing over time and see- Underwater, Dragged down by Debt ing a full blown eruption in late August, is still ongoing. By the numbers, Hanjin was severely overleveraged at a

TThe company voluntarily opted to enter ‘receivership,’ time that container shipping’s slump had also continued to followed by a Chapter 15 bankruptcy ? ling in the States, short- deepen. Analysts at AlphaLiner, a specialist in the container ly after the initial bombshell. The move provided a template trades, offered, “The company is the seventh largest liner in for Hanjin vessels to dock, and cargo to be discharged. By late the world, with 98 vessels totaling 609,500 teu as well as 44

October, most (but not all) stranded cargo had been unloaded; bulkers and tankers. It charters in 61 ships.” Drewry Shipping, chartered-in ships had gone back to their owners, and Hanjin an independent consultant with ? nance expertise, weighed in was seeking to raise money by selling off discrete portions of and said, “The debt burden was just staggering and it doesn’t its business. As the drama unfolded, the Port of Long Beach surprise us that [lead creditor] Korea Development Bank ef- (where Hanjin was historically a major player) showed Sep- fectively decided to pull the plug. As of end 2Q16, Hanjin had tember 2016 volumes down by 16.6% from the comparable a total debt of $4.2 bn and net gearing ratio of 8.7x, and cash 2015 ? gure. But, that’s only one part of the sordid story. at hand being $156.5m.”

Photo: SCPA 26 Maritime Logistics Professional 4Q 2016| | 18-33 Q4 MP2016.indd 26 11/10/2016 10:31:19 AM