All is not well in the intricate global system that brings the world its goods after Hanjin shipping declared bankruptcy this week.
The South Korean firm operated 90 ships, making it the worlds seventh-largest fleet, accounting for less than 4% of global shipping. But its demisethe biggest-ever shipping bankruptcyhas disrupted trade to the point where US retailers are starting to fret about stocking goods ahead of the busy holiday season and shipping competitors are hiking prices by as much as 50%.
The companys demise is largely due to overcapacity; wild growth in the number and capacity of container ships has outstripped the amount of goods to be carried as global trade has slowed. The industry as a whole will lose as much as $10 billion this year.
Falling prices have left comparative minnows, like Hanjin,without the cash flow to continue operatingthe company owed almost nine times its market value in debt. Bigger companies have been locked in an arms race to build the largest-possible ships, even as they seek mergers and competitive alliances that stay just one step ahead of international anti-trust cops.
There is a twist in Hanjins story, however. It tumbled into bankruptcy after one primary creditor, the Korean Development Bank, refused to restructure its loans. KDB is also the major financier behind Hyundai Merchant Marine, another South Korean shipper and the main rival to Hanjin. In the eyes of industry observers, like Flexport CEO Ryan Peterson, KDBs refusal to negotiate with Hanjin was a choice to effectively consolidate the countrys shipping into one firm:
After some messiness with customers not getting cargo delivered on time over the coming weeks, the Korean government gets a rather acceptable outcome: Instead of supporting two ailing carriers with constant bailouts as they compete all the profits out of Korean trade lanes, they get a single national champion that they can support as it competes on a global basis with best of breed carriers around the world.
That will prove cold comfort to those dealing with the fallout from the bankruptcy. Many ports refused to allow Hanjin ships to offload their cargo or obtain supplies. Port officials feared the ships would be unable to pay for tugs, offloading, food or water, or that creditors would attempt to seize ships and cargo. Hanjin has been scrambling to raise money to get its ships offloaded and keep its sailors from starving at sea.
As well as sailors, cargo has been stranded offshore, delaying deliveries and creating a mess with for the various firms who handle shipping for major retailers. Some buyers awaiting perishable goods have had to pony up special fees to the ports so they can obtain them before they rot at sea.
Then there are shippers who were counting on Hanjin to carry goods to the US over the coming weeks, ahead of the busy holiday shopping season beginning in November. Opportunistic carriers are raising rates, according to US businesses like UPS, and retailers may see higher transit costs eat into margins at a profitable time.
The price hikes are expected to fade, since analysts expect Hanjins ships to be picked up at auction and put back to work plying the trade routes. Thats a bit of a mixed blessing for the industry, even if customers will be happy to see low prices return, because the problem of overcapacity isnt about to go away.
There will very likely be more Hanjins, warns shipping analyst Olaf Merk.
The Illusionists: Magician Deals Stunning AGT Judges Card Trick - America"s Got Talent 2016 Part one of the finale for America"s Got Talent 2016 airs tonight with the top 10 remaining finalists performing. The results will be revealed tomorrow night with only one winner. The winner will walk away with a million dollars and the opportunity to headline a show in Las Vegas. Left in the mix are singers, mentalists, a magician, a juggler, a mime and a contortionist. For the details on the remaining AGT contestants for season 11, click through our cast gallery. (Photo by: Trae Patton/NBC) Next Image: America"s Got Talent - Season 11
Jon Dorenbos: NFL Magician Has Judges Use Footballs During His Act - America"s Got Talent 2016
Jon Dorenbos went from a little-known long snapper for the Philadelphia Eagles to being a star on Americas Got Talent with his jaw-dropping magic tricks.
On Tuesday night, he performed his final trick in the season finale, a trick that was not only incredible, but also inspiring. His performances have been absolutely mind-blowing on the show, from throwing footballs at a map to predicting pictures drawn by the judges, but this one was heartfelt and stunning.
Dorenbos trick on Tuesday night not only wowed the judges, but it moved his fellow NFL players on Twitter.
Hopefully Dorenbos journey on the competition ends with a championship and the title of being one of the most talented people in America. Hes already a Pro Bowl long snapper, so why not add this to his resume.
Pokemon GO PLUS & POKEMON GO APPLE WATCH APP!! How Pokemon GO Plus Works?! Pokemon Go Update NEWS!
Fancy some brand new Nintendo hardware? No, not NX. We have five Pokmon Go Plus gadgets to give away!
The wearable accessory syncs with your phone to give you Pokmon Go notifications without having to take your mobile out your pocket. You can even catch Pokmon and collect loot from PokStops with a simple button press.
The Pokmon Go Plus launches this Friday, 16th September priced 34.99 - but you can nab one yourself for free.
Of course, it"s not quite as simple as that. You"ll have to get a little creative to win your prize.
To celebrate the launch of Pokmon Sun and Moon later this year, we"d like you to design a new tropical form for a classic Pokmon and explain its changes.
For example, we"ve already seen how Exeggutor have turned into a palm tree in Sun and Moon"s Alolan region due to the warmer, sunnier climate. Slightly disturbingly, we"ve also seen how Rattata have turned into a darker, nocturnal version in response to the region"s rat-munching predator.
As an example, here"s Pia Colada Gengar.
He"s adapted into a less scary, more chilled out form because he now likes Alolan pia coladas and getting caught in the rain.
And that"s it. Put your creative skills to use in pen or on Photoshop then send us a pic of your design, and a note explaining it, to: pokemoncomp@eurogamer.net
We"ll judge entries on style, humour, and knowledge of Pokmon. The closing date is 8am UK time next Monday, 19th September. Best of luck!
Brian Justin Crum: Singer Rules the AGT Stage with Tears for Fears Cover - America"s Got Talent 2016
Grace VanderWaal was wonderful.(Photo: Vivian Zink, NBC)
America"s Got TalentcontestantGrace VanderWaal has done it again.
After her previous performances on the reality competition garnered millions of views online, the 12-year-old singer/songwriter and ukulele player premieredanew tune on the first night of AGT"sSeason 11 finale. It"s safe to say this one will go viral, too. It"s called Clay.
In the past, VanderWaal has used her endearingly "croaky" (judge Simon Cowell"s word)voice tosing about topics includingher own nameandher sister. On Tuesday night, her original tune was about bullies, and it wasthe most energetic we"ve seen her.
Remember how shy VanderWaal was in her audition (that was viewed more than 50 million times in two days)? She told us that she was "shaking like a leaf" right before thatAGTperformance.Now, she"s letting it rip, even passionatelysinging for a bit without uke accompaniment.
"Your words don"t hurt me, I will be OK," she sings.""Cause your punches and your names, all your jokes and stupid games.Watch them just go right through me, "cause they mean nothing to me ....I"m not trying to change my shape, "cause baby I"m not clay."
And baby, we"re not sure how any contestant could possibly best VanderWaal for theAGTcrown. The show names a winner Wednesday(8 ET/PT).
