The recent failure of Hanjin Shipping, one of the world’s largest movers of shipping containers, is having some dire consequences. In recent years, the Korean company has shipped somewhere in the neighborhood of 100 million tons of cargo every year. Unfortunately for the once strong Hanjin Shipping, however, several international elements have formed a maelstrom of trouble for the container shipping industry. Its creditors abandoning it and its government refusing to help, the dissolution of Hanjin Shipping looks to be imminent. And that just might spell a big problem for international trade and the global economy.
1. The Entire World Has Conspired to Kill Hanjin Shipping
There a variety of smaller reasons that Hanjin Shipping is currently being taken apart piece by piece. The world is moving away from container shipping, for example. There’s too much inventory in US stores to really merit a lot of need for it. That excess inventory, however, is indicative of a larger, objectively scarier reason for the failure of Hanjin Shipping, and that’s the weakened Global GDP. According to the International Monetary Fund, the world’s economy is in real danger of stalling if the economy’s growth doesn’t pick up.