Comments on: There’s High Risk of More Carrier Collapses Says Drewry https://www.universalcargo.com/theres-high-risk-of-more-carrier-collapses-says-drewry/ Freight Forwarding Company Wed, 19 Oct 2016 17:27:59 +0000 hourly 1 https://wordpress.org/?v=5.9.9 By: Jared Vineyard https://www.universalcargo.com/theres-high-risk-of-more-carrier-collapses-says-drewry/#comment-9841 Wed, 19 Oct 2016 17:27:59 +0000 https://www.universalcargo.com/?p=7899#comment-9841 In reply to Dave.

Thanks for the question, Dave. That is a great one, and a major issue for the international shipping in general right now. Carriers do not have very good transparency when it comes to their finances or even operations, like when a scheduled sailing is going to be cancelled or delayed or cargo is going to be placed on an alliance partner’s ship. The collapse of Hanjin is creating a demand from shippers for carriers to have a greater level of transparency, especially in terms of finances. Hanjin’s z-score was even worse than other carriers, but what these z-scores reveal is that many carriers are in a dangerous place financially. Many larger shippers are demanding to see financials from carriers before signing big contracts with them. The carriers make the shippers sign confidentiality agreements. Small to medium shippers, who can’t deal directly with the carriers, unfortunately do not have the same options. However, with the demand for transparency shift, big carriers should start getting used to a higher level of transparency because they’re not going to really have much of a choice.

]]>
By: Dave https://www.universalcargo.com/theres-high-risk-of-more-carrier-collapses-says-drewry/#comment-9361 Wed, 12 Oct 2016 15:32:53 +0000 https://www.universalcargo.com/?p=7899#comment-9361 JV, the Z Factor is interesting, though if all of the carriers are in the gray-distress-zone as was Hanjin. Then how would we importers know which shipper was near collapse before we agreed to terms with them?

]]>