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Ramifications of Hanjin's demise and status on the Hanjin fleet

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In issue 278 of the SeaIntel Sunday Spotlight we provide an extensive analysis of the impact Hanjin’s demise will have on the industry, and discuss the short and long term ramifications.

Ramifications of Hanjin’s demise

Hanjin’s demise is a completely unprecedented situation, as we’ve never had a carrier the size of Hanjin potentially go under. However, it is not only the Hanjin situation which is unprecedented. Within the last 21 months we have now seen the removal, or planned removal, of five global top-20 carriers: CSAV, APL, CSCL, UASC and Hanjin. Such rapid consolidation amongst the main players will change the competitive landscape of the industry.

In the short term the Hanjin situation gives rise to volatility and market turmoil. However, in the longer perspective, such consolidation is what the industry has been repeatedly aiming for in order to create stability.

The main unknown presently is whether the significant round of consolidation is over for now, or whether more is to come.

Hanjin Vessels: What is happening?

We analyse each trade lane where Hanjin vessels are deployed, and identify the carriers engaged in Hanjin-operated service, either as operators or as slot charterers. We assess the state and position of the Hanjin fleet as of on Monday 14:00 CEST, September 5th. We find that while 43 vessels are currently en route to their scheduled destination, 39 vessels are currently either circling or anchored outside of a port where they were supposed to call. Seven vessels may have been arrested by creditors.

Hanjin’s fleet – Owned and chartered

Only a handful of interesting vessels in Hanjin’s owned fleet, and several are likely headed straight for scrapping. Four charter owners have high exposure, but marketable vessels, while Conti will likely struggle to find new contracts for their Hanjin vessels.