Retailers scramble to work around Hanjin Shipping bankruptcy
RetailDive.com - Sep 5th 2016, 09:31
Retailers are working to minimize the fallout from the bankruptcy of South Korea's Hanjin Shipping, the world’s seventh-largest ocean shipper by capacity, the National Retail Federation said Thursday.
Hanjin Shipping filed for bankruptcy protection Wednesday, disrupting supply chains just as retailers are preparing for the all-important holiday shopping season. The situation is now being handled in South Korean court, and the government there says it will help prop up Hanjin.
Hanjin is part of an alliance of six shipping companies, which complicates the problem even further, according to the Wall Street Journal. Trucking and railroad companies (especially those heavily dependent on moving the shipper’s cargo from U.S. ports) are wary, further complicating the matter, and some 540,000 containers may see delivery delays ranging from a few days to more than a month, freight brokers in Asia said. Shipping rates have soared as a result, increasing to $2,300 per container by Thursday, up from $1,700 four days earlier.
“Retailers’ main concern is that there is millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a statement Thursday. “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. However, we need all parties to work together to find solutions to move this cargo so it does not have a broader impact on the economy.
Gold admitted that there are more questions than answers at this point, but said retailers are working to address the matter, "working with all of their service providers to find ways to get their cargo moving to ensure that there is no or limited interruption in the supply of merchandise."
2016 Industry Dive. All rights reserved
South Africans are spending less on their weekly shopping trip
23/05/2019 - 09:44
Tiger Brands, which carries brands including Koo canned foods, All Gold, and Tastic rice, said that revenue from continuing operations fell 2% to R15.4 billion in the interim period.
Bidcorp expects higher food inflation in SA
23/05/2019 - 09:16
Global food-services group Bidcorp expects rising food price inflation in SA, where food producers and retailers are grappling with higher costs and low selling price increases.
Nike and Adidas join 173 US shoe retailers in call to avoid ‘catastrophic’ tariffs
21/05/2019 - 12:23
Nike, Adidas, and other footwear giants urged President Donald Trump to reconsider his tariffs on shoes made in China, saying the policy would be “catastrophic for our consumers, our companies and the American economy as a whole”.
Rhodes Food Group reports slight decline in net profit
21/05/2019 - 09:59
Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, says profit after tax was slightly down in the six months to end-March despite better sales.
Walmart reveals plans for a new corporate campus
20/05/2019 - 17:04
Corporate America has been under political pressure to ramp up investments at home.