# Hanjin Shipping BANKRUPT! NO NEW RETAIL ITEMS MAY B COMING~Shipping costs skyrocket



## Cataptrra (Mar 16, 2015)

Guys and Gals, looks like Hanjin, a shipping company is in real trouble, they're ships are being seized by creditors, railroads and other movers of what comes in on these ships are NOT being moved.

Read the full story at this link:

*Hanjin Shipping bankruptcy causes turmoil in global sea freight *
https://www.theguardian.com/busines...nkruptcy-causes-turmoil-in-global-sea-freight

This may just be the death of not only G scale, but possibly a lot of other things, especially those in the US that have orders, pre-orders, etc. coming from across the seas. This looks to be really bad and may put the US into an economic disaster, as well as the world since Hanjin is or was the worlds largest shipper.

So don't expect any new items anytime soon, because the story in the link supplied earlier, just doesn't sound too good for any of us!


----------



## Ironton (Jan 2, 2008)

The analysts are saying there is so much capacity out there that Hanjin closing will have little effect on overall trade. They have been facing trouble because there is too much capacity in the shipping business and not enough cargo to justify it. Therefore shipping rates have been cut past the point of making a profit.

Will have to wait and see. Most of the cargo being seized off of Hanjin ships was destined for filling the shelves for Christmas. Yeah, the Christmas sales are right around the corner.


----------



## Cataptrra (Mar 16, 2015)

Ironton said:


> The analysts are saying there is so much capacity out there that Hanjin closing will have little effect on overall trade. They have been facing trouble because there is too much capacity in the shipping business and not enough cargo to justify it. Therefore shipping rates have been cut past the point of making a profit.
> 
> Will have to wait and see. Most of the cargo being seized off of Hanjin ships was destined for filling the shelves for Christmas. Yeah, the Christmas sales are right around the corner.


I never trust analysts that much anymore, they've been wrong too many times for me to trust what they say.

All we can do is wait and see, but when I've seen CSX cargo freight trains roll through my area 98% of the containers names on them were "Hanjin", so I do believe this is going to be one of the worst financial disasters in history. Worse than that very first depression that hit the world back in the 30's{memory not what it used to be on dates...LOL}. 

But only time will tell that tale.

But from what and how that article reads, sure does not sound very promising to me.


----------



## Totalwrecker (Feb 26, 2009)

I don't expect to see anything New until their pricing structure invites new production. Now our trains have to compete with toys to get made and we don't have the bucks to get in line.
They have to be made before shipping is a concern.
Dos centavos 
John


----------



## Mark_s (Jun 24, 2013)

My 2 cents:

Bridgewerks products are assembled in the US, from mostly american made parts. We do source some of our components from overseas, but I do not expect that an increased transportation cost will have much of an impact on our costs or business. The Hanjin bankruptcy is an indication to me that shipping costs have dropped to an sustainable low level, and will have to rise, which will increase the costs of all foreign products.

A much bigger influence is the drop in popularity of model railroading - I am much more concerned that the hobby cannot support the local retail hobby shops any more, than I am that we can't support Hanjin Shipping.


----------



## vsmith (Jan 2, 2008)

This will only effect product already on the water. If it's sitting on land it will eventually get shipped, via another shipping company if in China or just put on a train or truck if here.


----------



## SD90WLMT (Feb 16, 2010)

From my unique vantage point living near a southern main line, there are many suppliers containers..from a long list of companies..
More like a couple drops in bucket..than all the water in it..
I see few H. containers.. many..many others..

More than one way to skin a cat in life..
Our own global economy will have greater impact in the future on our desires for G toys in the back yard of our homes..

Ran at Alans yesterday afternoon..btw.. fun time!
Run a train..relax in life!

SD


----------



## Greg Elmassian (Jan 3, 2008)

They are the 7th largest shipper in the world. So there are 6 other LARGER shippers still in business.

I'm not losing any sleep.

Greg


----------



## Semper Vaporo (Jan 2, 2008)

I happen to have been making a list of names I see on the side of "Intermodal Shipping Containers" (not semi trailers on flat-cars) I see on trains while watching the Roanoke, VA and Rochelle, IL webcams as well as when I am out railfanning... Hanjin is just one of the 54 different names I have listed in the last 3 weeks. Seems there are plenty of companies to fill the void.


----------



## Doug C (Jan 14, 2008)

Unless hanjin has their fingers into multiples of those previously mentioned 54 container supply companies it will sting for awhile, especially for the frontline workers and the peoples effected by any seized in the system cargo. 

Analysts and subsequently media tend to make big on negative, but small (if at all) on the positives !!!


----------



## Semper Vaporo (Jan 2, 2008)

I was just watching the Virginia Museum of Transportation railcam and added 6 more names to my list. And there are still lots of containers that I have not been able to read the name on the side (some companies do not seem to be as proud of their name as others and it is not printed big enough to read on the webcam video feed).


----------



## Dr Rivet (Jan 5, 2008)

Sorry I came in Late... THE SKY IS FALLING !!! THE SKY IS FALLING !!!!
This will turn out to be a tempest in a teapot with short term implications while they figure out who is going to assume responsibility for all of Hanjin's containers full of stuff.

In addition, prices will not skyrocket , they will stabilize at a reasonable rate.
Apparently almost no one thinks any company is entitled to a profit, especially if it directly impacts their purchase of toys. 
And unfortunately, many companies created this problem by setting their original prices too low, creating unrealistic future expectations. Add to that the fact that senior executives will do anything to acquire more "market share" [in this case a shipping company], even if they are losing millions of dollars in the process. I remember when I was in Engineering Math at the U of A [Tucson], in a business class a "bright boy" actually suggested that if you only lost $0.10 on the production of an item, it was "so little money" that you could make it up on volume.


----------



## SD90WLMT (Feb 16, 2010)

Ah.. The amazing virtues of modern math... Profit n loss vs. Taxes...add endum..

Not late Rivet..ribbit on in..lol

SD


----------



## riderdan (Jan 2, 2014)

Dr Rivet said:


> I remember when I was in Engineering Math at the U of A [Tucson], in a business class a "bright boy" actually suggested that if you only lost $0.10 on the production of an item, it was "so little money" that you could make it up on volume.


That's the whole late 90's dotcom era explained in one sentence. When I started working in the software industry, VC's were throwing money at anything internet related. Pets.com, webvan, geocities. I worked at three places that went under--and I always had to shake my head. Here's a web service company that sent a limo to pick me up for an interview (I kid you not, and I'm not a CEO) had catered lunch three days a week, video games and pinball in the conference rooms, and about one paying customer a month. What could possibly go wrong?

Anyway, I'm in the group that think this will have minimal direct impact. There's a lot of excess seagoing cargo capacity at the moment, and it was almost inevitable that a couple of these carriers would go under. The biggest problem at the moment is the surge in drayage and warehousing as everyone rushes to get their stuff unloaded before the bankruptcy becomes official and Hanjin grinds to a halt. But there are plenty of other shippers to pick up the difference, and I don't even think prices will go up significantly. Even with Hanjin out, there's still probably significant slack capacity in the system.


----------



## Dr Rivet (Jan 5, 2008)

Dan

The BAD NEWS is this happened NOT in the 1990s, but in 1968. What's 20 years more or less. Reality is irrelevant if your mind is made up. Reality is RELEVANT if you try to think "outside the box" because without it you cannot tell if you are inside or outside.


----------



## riderdan (Jan 2, 2014)

Dr Rivet said:


> Dan
> 
> The BAD NEWS is this happened NOT in the 1990s, but in 1968. What's 20 years more or less. Reality is irrelevant if your mind is made up. Reality is RELEVANT if you try to think "outside the box" because without it you cannot tell if you are inside or outside.


So what you're saying is that there's nothing new under the sun?  

I think it's funny (but not funny "ha ha") that we keep repeating history. What was a revelation to me in 1998 was apparently well known (to you at least) in 1968. I suspect that when the next bubble comes around, some guy younger than me will think it's the first time this has ever happened. Was it Marx who said "History repeats itself, first as tragedy then as farce"? 

It's a shame that we don't do a better job of learning from past mistakes. At least I'd like to do better myself. And it would be even better if we could learn from the mistakes of others. Sad that we often don't.


----------



## Scottychaos (Jan 2, 2008)

Could a moderator please change the subject line of this thread from:

Hanjin Shipping BANKRUPT! NO NEW RETAIL ITEMS MAY B COMING~Shipping costs skyrocket

To:

Hanjin Shipping bankrupt.

since that is the only part that is accurate. 
thanks,
Scot


----------



## JerryB (Jan 2, 2008)

I can only assume that parents and schools no longer teach the fable featuring Chicken Little!


----------



## JackM (Jul 29, 2008)

> Was it Marx who said "History repeats itself, first as tragedy then as farce"?


 Karl or Groucho? Harpo? Chicho? Zeppo? Gummo? 

JackM


----------



## vsmith (Jan 2, 2008)

JackM said:


> Karl or Groucho? Harpo? Chicho? Zeppo? Gummo?
> 
> JackM


Groucho always said the funniest brother was always Karl


----------



## Cataptrra (Mar 16, 2015)

Doug C said:


> Unless hanjin has their fingers into multiples of those previously mentioned 54 container supply companies it will sting for awhile, especially for the frontline workers and the peoples effected by any seized in the system cargo.
> 
> Analysts and subsequently media tend to make big on negative, but small (if at all) on the positives !!!


Definitely agree 100,000,000% on your last statement!


----------



## John 842 (Oct 1, 2015)

* stops by table outside coffee shop where bunch of guys are gossiping * ..... 

.... shipping company is in *real* trouble .... ships are being *seized* by creditors .... the *death* of not only G scale .... looks to be *really* bad ..... put the US into an *economic* *disaster .... *don't expect *any* new items anytime soon .... doesn't sound good for *any* of us! .... 

* puts on wry smile and decides to move right along - nothing to see here * ....


----------



## Ironton (Jan 2, 2008)

Remember, institutions do not learn (consider the US government). Only people learn. A new crop of people have to relearn the lessons again each time. Particularly true when history is not taught as an analysis but simply as a list of events.

Yes there will be short time pain. Yes the shipping rates will increase. Yes we will get through this and finally accept the new situation as the norm. Then wait for the next big event to derail the norm.

Do not remember how many "norms" ihave gone through since high school in the late 50s.


----------



## John 842 (Oct 1, 2015)

Ironton said:


> Remember, institutions do not learn (consider the US government). Only people learn. A new crop of people have to relearn the lessons again each time.


Exactly - just like civilization itself which may be millions of years old - but each new crop of people have to be civilised from scratch because they're born completely un-civilised.


----------

