SINGAPORE: The unprecedented collapse of South Korea’s Hanjin Shipping, until recently the world’s seventh largest container line, has thrown the global shipping industry and supply chains into massive disarray.
Dozens of Hanjin ships carrying cargo worth US$14.5 billion (S$19.7 billion) were left out at sea when the shipping giant filed for receivership last month, after creditors halted financial support.
Some of these ships have been denied entry into ports, while others have refused to dock on fears of being seized by creditors. The marooned cargo could spell trouble for retailers ahead of Christmas.
For Singapore, which is intricately linked to the global maritime trade, industry observers say it is likely the port will emerge relatively unscathed. It is the smaller firms down the supply chain that could take a harder hit.
The bigger question that remains is what the protracted downturn – of which Hanjin has emerged as the biggest casualty – means for Singapore in the longer run.
