An indicator Japan’s economy is going down, down, down as global shipping’s 7th largest container shipper goes insolvent

Considering the previous post on Japan’s government leaders tossing the biggest pension fund in the world the GPIF into Japan’s gambling casino the Nikei in which the most recent loss is a staggering $1.3 trillion Yen, container shipping just took a big hit.  The best barometer for how the world economy is doing is shipping. And look what we have here. South Korea’s Hanjin Shipping Co. filed for receivership Wednesday, as shipping companies world-wide grapple with overcapacity amid a slump in global trade. Hanjin Shipping Co. is at overcapacity with 150 ships. This is more proof Japan’s economy is going down.

Hanjin Shipping Co. is the seventh largest container shipping company in the world and several of their ships are right now sitting outside American ports because Hanjin Shipping Co. is unable to pay docking and tug boat fees. Japan’s concern is that its manufacturing capacity isn’t providing manufactured goods for Hanjin Shipping Co. to transship to a global market. So what does Japan do? Tosses $1.3 trillion of their pension funds into the Nikei gambling casino to “stimulate” manufacturing.
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Source: MarketWatch

South Korea’s Hanjin Shipping files for receivership

August 31, 2016

by In-Soo Nam

Court to determine whether world’s seventh-largest shipping line should be liquidated

Cargo stands on board the Hanjin United Kingdom container ship, operated by Hanjin Shipping Co., which has filed for bankruptcy protection.

South Korea’s Hanjin Shipping Co. filed for receivership Wednesday, as shipping companies world-wide grapple with overcapacity amid a slump in global trade.

The filing with the Seoul Central District Court came just a day after the company’s creditors discontinued providing a lifeline after financial assistance of more than 1 trillion won ($896 million) failed to keep it afloat.

The court will soon determine whether Hanjin 117930, -24.16%, the country’s largest container operator by capacity, should be liquidated or given a chance to survive after restructuring, the company said.

Hanjin’s receivership, which is a form of creditor protection, comes as shipping companies world-wide have been hit by years of slumping demand—particularly from China—as global trade has slowed. Some companies have been forced to sell vessels at a discount while a handful of smaller operators have gone bankrupt.

Hanjin, the world’s seventh-largest shipping line by capacity, would become the biggest company in the industry to go under if it is ordered to fold.
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Further reading:

Global Supply Chains Paralyzed After World’s 7th Largest Container Shipper Files Bankruptcy, Assets Frozen

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One thought on “An indicator Japan’s economy is going down, down, down as global shipping’s 7th largest container shipper goes insolvent

  1. No I dont see any notable connection between these two. Can you please elaborate? And re your post below, if the Japanese government is so crazy to be investing pension funds in equities, then why is usd/jpy so stable all of these years? Appearantly the world’s investors dont see a problem. Japanese growth is slow; there is the deomgraphic problem, but it is still a comparatively safe bet vs pretty much any other economy. Let me ask you this: where would you put your money? If you had any that is?

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