>LOS ANGELES (AP) — The bankruptcy of the Hanjin shipping line has thrown ports and retailers around the world into confusion, with giant container ships marooned and merchants worrying whether tons of goods will reach their shelves.
>"Hanjin called us and said: 'We're going bankrupt and we can't pay any bills — so don't bother asking,' " said J. Kip Louttit, executive director of the Marine Exchange of Southern California, which provides traffic control for the ports of Los Angeles and Long Beach, the nation's busiest port complex.
>The bankruptcy is having "a ripple effect throughout the global supply chain" that could cause significant harm to both consumers and the U.S. economy, the association wrote.
>"Retailers' main concern is that there (are) millions of dollars' worth of merchandise that needs to be on store shelves that could be impacted by this," said Jonathan Gold, the group's vice president for supply chain and customs policy. "Some of it is sitting in Asia waiting to be loaded on ships, some is already aboard ships out on the ocean and some is sitting on U.S. docks waiting to be picked up. It is understandable that port terminal operators, railroads, trucking companies and others don't want to do work for Hanjin if they are concerned they won't get paid."
My brother is a general manager at a very large box store and the TO head office woke him up to call him early tomorrow. Seems big and from googling for five minutes or so I don't think this has ever happened remotely on this scale before. Especially during the stock up for Christmas season.
How does a shipping company go bankrupt in this day and age? Since it's Korean I am going to assume massive embezzlement/corruption of some kind.
Alexander Stewart
Awesome
Joshua Gray
hopefully this is the beginning of the global economic collapse
Luke Morales
Holy fuck. Hanjin is huge.
Could just be due to the huge competition after '08.
Brandon Green
Nevermind it's not 26 hours old I did my time conversion wrong. It's a few hours fresh. Sorry for disinfo in two previous posts.
Carson Morales
I love Sup Forums
Carson Lewis
How's that baltic dry index doing again?
Noah Powell
HOW'S THAT GLOBALISM WORKING OUT FOR YA?
Elijah Green
are you saying I can bid on this shit like storage wars??
Julian Cooper
Exactly my thought.
Oil is dirt cheap, and manufacturing in china is at an all time high. What could possibly go wrong?
Jacob Allen
>merchants worrying
Dylan Cruz
>tfw you wish you were an analyst that shorted/placed a put option on these shares
welp
Mason Wright
Haven't we known that these shipping companies were experiencing big losses for a long time now?
Kayden Taylor
$304b market cap even after the crash.. holy sheet this is bigger than even I expected
Carson Ortiz
why
Mason Smith
> Buy super Panamax ship full of jet skis > Wait for global warming and societal collapse > We Waterworld and sheeeit
Levi Nguyen
Shipping companies have been expanding so much for so long (made even worse due to drastically lower fuel costs) dry bulk shipping rates have been crashing. This is just the market re-balancing itself.
Henry Smith
> inb4 iPhone delays
This could be good though. Instability in shipping helps domestic business and manufacturing.
Christopher Baker
Well just buy this company for few shekels, for the good of int trade ofc
Levi Morgan
Tick tock capital cucks.
Tick tock.
Owen Parker
DROP IT LIKE A HOT ROCK
Ethan James
surely it's going to tank even more when asian markets open ... shit boys it might even be world economic collapse day on monday
Tyler Lee
Also
Jaxon Turner
This is the downside of globalism. Most of the time it works great, but a hike in fuel prices, bankruptcy of a major shipping firm, or damage/striking at a major port complex can completely wreck everything.
Imagine a pandemic that swept through China and killed a significant portion of factory laborers. Same basic outcome. Unlike domestic manufacturing, global supply chains are inherently more complex, physically broader, and, thus, prone to failure.
David Morris
It'll be bailed out. Nothing will happen.
Aaron King
Leftypol go back to your containment board socialism is retard tier economics/politics
Gavin Morgan
Thank Moses for those bailouts. Issac forbid we ever have to pay the piper!
Aaron Clark
Not yet Marx. Africa has yet to be developed yet. Once cheap labor runs out is when shit will start to get real.
Camden Davis
>Digits of Truth
First thing I thought of too, might hurt initially but would end up being a good thing.
Gavin Richardson
he could be a natsoc. and he's probably right. capitalism is great but it can't last forever or we'll all be slaves.
Charles Campbell
I agree, no money to pay for gibs, third world scum stops coming.
David Harris
Holy shit, markets will dry up worldwide Monday
Jackson Bell
If we find Nick Cage's ship can we buy hinds wholesale?
Nicholas White
Who's ready for the bailout?
Jaxon Hughes
Sounds like it's time to [puts on sunglasses] Make American manufacturing great again!
Matthew Robinson
That is because they are not a government subsidized company like China Ocean Shipping Company .
Dominic Lewis
looks like white goys are going to have to make their own shit and garbage.
chinks are tired of being their slaves.
Aiden Campbell
I think the margins are so small now that any hiccup in the cash flow sends the whole thing to hell.
Expensive labor is the result of students of Marx's philosophy.
William Brooks
All right I'll take the bait, so I'm going to go out on a limb and say they move general goods, people use these general goods everyday. People get fucking dumb and angry if the thing they want isn't on the shelf, but what happens when large stores don't have most of their products and won't get them for weeks, people go full fucking retard and get spun into a fray. >conspiracy time With europoor countries telling people to once again have 10 days worth of food stocked at all times, it seems that pieces like this are getting moved so that when war comes, countries will have their hands tied with the problems at hand when war strikes, the best way to weaken a nation is to drain it's resources. >not conspiracy Sounds like they got a huge nip in the ass through taking hits on trade and this fallout is just the response to build up, though it is kind of quick, wonder how the this will effect the economy to come.
Andrew Cooper
>buy panamax ship for less than scrap value >pay russia to do a nuclear re-power >build nice living quarters, farm, fabrication shop, fitness center, and gaming lounge >roam the earths oceans for the next couple decades non stop while observing all the happenings via sat internet
welcome home Sup Forums
Jason Murphy
Yes, yes, the didn't listen to the jews, labor should be cheap, cheap! The workers should want slavery!
Yes! yes!
Colton Gray
I know a trucking freight broker in Los Angeles and he says things have been really slow lately. Could be related. Shouldn't all the Christmas junk from China be showing up at the ports now???
Benjamin Ross
Global collapse. The millenial's prolapse. Crash Crash Crash Ruination and stagnation is our next destination for every nation!
Jaxson Young
This smells like Enron.
Adam Roberts
Guys I'm scared, I don't want to die.
Cooper Cruz
>it's 2016 FFS
Nicholas Perez
We're still in the end-of-summer slump. Don't bring up Christmas yet. That will make the Jews nervous.
Kayden Morales
>most of the time globalism works great
James Bell
...
Evan Hernandez
You know (((capitalism))) is in big fucking trouble when international fucking shipping (basically one of its defining industries) is no longer profitable at a time when oil is cheap as dirt.
Buckle up faggots things are gonna get scary.
Ethan Gomez
Yeah and it looks like the chinks are going to go back to working rice fields for 25c a day instead of putting together phones for $2 a day inside a building out of the sun and rain.
Don't worry, Poland will still have toilets to scrub.
Aiden Ortiz
>With europoor countries telling people to once again have 10 days worth of food stocked at all times,
Ever since the 200X great blackout our government told us to stockpile at least 14 days of supplies. Could be harmless.
Asher Robinson
I remember last year during the new year's baltic dry index drying up, there were almost no warehouse jobs available for me here in Vancouver. Because no shipments were going in, I was out of work and had to pick up a trade.
Is this the real happening?
Joshua Edwards
Koreans are awful at running companies. It's probably just a huge fuck up with the financials.
Andrew Rivera
hope you have seeds storable food silver and the like
Jace Long
>muh toilet meme
dont worry murka
them Messicans are already cleaning your shithole but good, are you going to jump off a tall building if trump doesnt win?
you should seriously consider it
Luis Williams
It's real in the sense that HanJin is bankrupt and 'abandoning' their ships in port. Could they be bailed out? It's very possible. Will the Americans pressure SK to do something about it? Absolutely. They are doing so right now most likely.
Xavier Barnes
Millions of dollars of products no one needs that will be thrown into a landfill and never sold, even if they arrived.
Ian Lewis
And that's what I've gathered for the most part, it's just odd that they would be saying in now after the wall came down, after this many years where we have high tensions between countries.
Tyler Butler
>the jews of asia
Hunter Smith
Market Saturation
Shipping never really recovered from 2008. Everyone has all the consume goods they need. The emerging markets are in Africa. China is just building the factories in Africa.
Kevin Williams
>Globalism works great.
Parker Turner
dibs on working in the engine room
dibs
dibs
dibs
Luis Garcia
It's not so much the property in the containers but the fact shipping container prices have doubled overnight ( ) and this could destroy investor confidence all over the globe triggering another massive recession. Perhaps depression if we're lucky.
> The price from China to West Coast ports rose from $1,100 per container to as much as $1,700 on Thursday, while the cost from China to the East Coast jumped from $1,700 to $2,400, he said.
I guess we'll find out what happens on Monday when markets open.
Noah Morgan
With higher wages, either unskilled people eventually lose any opportunity for employment due to automation, or everything is really expensive to compensate for the costs.
So, when automation is not possible, companies are willing to ship from cheap countries with cheap unskilled labor because the local equivalent unskilled laborers screwed themselves out of a job.
Michael Lee
Most shipping corps have been hurting for a while.
Michael Ross
Shipping has had overcapacity for a while. Global growth is slow and hasn't been able to absorb all of the extra ships that were being built.
Mason Perry
What happens when there is no real cheap labor anymore?
Gavin Jenkins
How many containers per ship?
Carter Brown
Back in the day unions made sure that the corporations propped up the unskilled workers so they had enough cash for consumer goods. Everyone won until globalism became a thing and unions got way too greedy and corrupt.
Hudson Stewart
bailed out by who, the South Korean government? We know how well Korean bailing-out works
Grayson Edwards
Only if you're so stupid that you let slave labor take over your economy. When did you first start to hate black people so much?
Jeremiah Anderson
Other shipping companies will buy their assets and pick up the slack. This is like worrying about Sears going bankrupt when there's Walmart, Target, and Amazon.
Hudson Bailey
>i asked my uni professors why a country should give up its rights to be self-sufficient in both food and manufacturing >He told me not to worry about it, that international shipping and movement of goods is too strong, widespread and reliable to fail >thought it was bullshit >see this >mfw
David Turner
what a coincidence
Joseph Morgan
>> The price from China to West Coast ports rose from $1,100 per container to as much as $1,700 on Thursday, while the cost from China to the East Coast jumped from $1,700 to $2,400, he said. Shit, no wonder they don't send them back empty. I just bought a 40 foot container for storage $1800 delivered.
Lucas King
Unions didn't get greedy. Corporations just moved overseas. There was nothing unions could do. The real risk is global unions. Those could seriously fuck over a capitalist economy.
Austin Rogers
Lehman brothers brought down the whole deck of cards. When everything is funded on debt and speculation all it takes is a good gust for it all to come crashing down.
Luke Green
How most big companies go down. Insolvency.
Luke Gonzalez
fuck off queer
Jonathan Morgan
You. I like you. Self-sufficiency should be the goal of every nation so when shit like his happens you're not hurt as much.
Isaac Adams
you better get used to the real future of housing for the next few decades
Lucas Cook
Venezuela SpongeBob gif
William Baker
I read another source that prices have doubled for containers but I only found that quote quickly.
Juan Miller
That only works in certain climates.
Elijah Jenkins
Not likely. The liquidator will take years to sell off everything. The ships will probably be sold off lock stock an barrel or dumped.
Grayson Fisher
Yeah I said the same. Way too much capacity. Hanjin had an old fleet too.
Joseph Scott
Hyundai's ocean liner is next, they're in serious trouble too with no help from gov't
Kayden Ramirez
It'll just get swallowed up by whoever was out-competing it. I'm sure the consolidation won't be exactly good for the free market, but it's not exactly something the consumer will notice directly.
Xavier Taylor
But what if...
you had it...
ON A BOAT!
:O
Owen Gutierrez
Didn't this happen last week?
Mason Powell
>what is automation
Luke Morris
Also, there is a massive oversupply in the shipping industry. Simply, there are too many cargo vessels, and they are getting bigger and bigger, leading to the cost-per-container that can be charged declining.
Mason Butler
Not really. Vietnam, Bangladeshi factories are the next step.
Truthfully Trump is going to end this so we don't have 80 years of poverty in the west that woukd break civilization.