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.
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
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.