SPARKS, Nev. (BRAIN) — Many suppliers got a short email notice Thursday from the Sporting Goods Shipping Association (SGSA) with an article from the Journal of Commerce attached.
What had been a bright spot for most suppliers — record low rates for ocean freight shipping of 40-foot containers (see the October 1 issue of BRAIN) — is coming to an abrupt halt with the bankruptcy of Hanjin Shipping Company. Hanjin filed for bankruptcy Wednesday in Seoul, South Korea.
Angie Munson, SGSA’s executive director, told BRAIN that it was too early to tell how the bankruptcy would affect container shipments for the industry from key Asian ports. However, container rates are going up immediately, said Munson as well as several major publications that track the transportation industry.
Shippers imposed spot rate increases on trans-Pacific shipping Thursday. Rates had already been trending up slightly. Rates for West Coast-bound ships could go up 54 percent or more, while East Coast-bound rates could see a 50 percent increase.
Munson, who manages shipping rates for companies in the sporting goods industry as well as some in the bicycle industry, said she doesn’t think — at this point — that the impact in terms of delayed shipments, primarily to …read more