Maersk has found that Hanjin’s collapse has caused a short-term rise in freight rates, which the company have said is providing commercial opportunities for its business, and could increase its net profit by US$760 million in 2016, according to Bloomberg.
Klaus Rud Sejling, the Executive in charge of Maersk Line’s east-west network, said: “The question is what will happen with the rates in the longer term. In the short term, the effect is positive, but there are many factors that can influence rates in the medium and in the long term.
Technical Paper: Huge Overcapacity: In Absence of Global Demand
“What we’re hearing from the customers that are coming to us is that they are seeking a partner that’s stable. Customers are coming to us because we are financially strong.”
However, Reuters reported that although the 50% increase is significant, it is not enough to fix the problems inherent in the industry.
Clint Eisenhauer, Vice President for External Affairs at the South Carolina Port Authority, said: “All of Hanjin's ships aren't just going to sink overnight. We are going to see the same imbalance between supply and demand, and beyond a short-term spike the impact on rates shouldn't be dramatic.”
The issues that have triggered Hanjin’s ruin have been building over the last few years, in which a slump in demand has caused financial struggles for the world’s leading carriers.
Technical Paper: Maritime Shipping: Disadvantages of Scale
In previous reports by PTI, it was reported that Hanjin’s fall could have an effect on global carriers, as it highlights the issue of whether other lines have the financial resilience to fend off the rust of industry debt.
The question that remains now is if carriers can cut costs as fast as revenue is plummeting. Will alliances and consolidation, among other factors, prevent further losses? Only time will tell.
