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When Carriers Collapse
The Hanjin Shipping bankruptcy certainly caused a stir in the shipping world. Containers filled with billions of dollars of cargo are stranded, and the shippers this cargo belongs to can’t do anything about it. Shippers, truckers, terminals, fuel providers, and chassis companies are all affected by this bankruptcy, and they are concerned with how it will affect their current and future business.
In light of these events, US federal maritime commissioner William Doyle had a suggestion. He proposed that alliances should have to prove that they have emergency procedures in place in case another carrier were to collapse like Hanjin Shipping. No concrete method of his idea exists yet, but it would be a beneficial procedure to have set up, for all parties involved, as a safety net.
All of the container shipping alliances have strong carriers on their teams, but the issue is that the less reliable carriers are mixed in with the healthy ones. When a shipper chooses a healthy carrier, there is no guarantee that their cargo will only move with that particular carrier. It could very well end up on a less than reliable carrier’s ship.
The new alliances will take effect in April 2017. Shippers will definitely be looking closely at the strongest carriers at that time. It may prove challenging to avoid a situation like Hanjin again when the shippers do not have a direct influence in the movement of their cargo. Hopefully a solution comes about by then, possibly even FMC William Doyle’s idea, which gives shippers a better sense of security with their carrier of choice.
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