Comments on: Hanjin Collapses, And You Won’t Believe What Happens Next!

By: Jared Vineyard

Jared Vineyard — Tue, 27 Sep 2016 00:52:21 +0000

From the shippers’ perspective, there’s probably no such thing as too low freight rates. However, for a long time freight rates have been too low for carriers. They’ve been struggling to be profitable, and in large part, the low freight rates is due to overcapacity. Was the decrease in capacity caused by Hanjin’s receivership really enough to cause the hike in freight rates that carriers charged? I suspect not. Those increases don’t seem to be lasting long term. Still, the carriers do need to increase rates to be profitable. While shippers enjoy low freight rates in the moment, prolonged low freight rates (like what we’ve experienced) could cause enough players to exit the game on the carriers end that competition will drop enough for freight rates to dramatically increase over a much longer period.

By: Raymond Rau

Raymond Rau — Mon, 26 Sep 2016 18:23:20 +0000

In reply to Gary Ferrulli. I say it is my view that shippers will pay exactly whatever the carrier charges. They will always say they are paying too much but we know from the days when the rate goes up to $4-$5k that they can pay higher rates.

By: Gary Ferrulli

Gary Ferrulli — Wed, 07 Sep 2016 16:04:55 +0000

Across the industry, carriers are using the decrease in capacity caused by Hanjin’s receivership to push rate increases. Is it your view that shippers are paying not enough, too much, or just right today? or last week? or last month? or the last 60 months?