Hanjin Shipping To Shut Down EU Operations As Global Demand Falls

H/t reader squodgy:

“As predicted.”


Hanjin Shipping To Shut Down EU Operations As Global Demand Falls:

Remember all those mainstream pundits and the lie-mongers at Forbes that claimed the collapse of the Baltic Dry Index was due to an “oversupply of ships” and not falling global demand?  Well, they seem to have disappeared recently as shipping agencies like Maersk Lines have openly admitted that falling demand around the world for raw materials and oil have resulted in dismal shipping rates.  The latest nail in the coffin of the mainstream fantasy has been the implosion of Hanjin Shipping, a massive shipping conglomerate that is now essentially bankrupt, and this has been due to FALLING DEMAND in a dwindling marketplace, not too many cargo ships active on the seas.  It might take longer than expected, but almost every single argument made by the alternative financial media over the years is being proven correct…

Hanjin Shipping Co., South Korea’s largest container line that has put its Asia-U.S. business on sale after filing for bankruptcy protection late August, won approval from a court to wind down its European operations as demand for its services to the continent slumped.

Read moreHanjin Shipping To Shut Down EU Operations As Global Demand Falls

Global Supply Chains Paralyzed After World’s 7th Largest Container Shipper Files Bankruptcy, Assets Frozen

hanjin

Global Supply Chains Paralyzed After World’s 7th Largest Container Shipper Files Bankruptcy, Assets Frozen:

After years of relentless decline in the Baltic Dry index today the largest casualty finally emerged on Wednesday when South Korea’s Hanjin Shipping, the country’s largest shipping firm and the world’s seventh-biggest container carrier, filed for court receivership on Wednesday after losing the support of its banks, leaving its assets frozen as ports from China to Spain denied access to its vessels.

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Surprise! Baltic Dry Index Plunges Most Since November As Commodity Bubble Bursts

Surprise! Baltic Dry Index Plunges Most Since November As Commodity Bubble Bursts:

Who could have seen this coming? Remember a week ago when TV entertainers crowed about the surge in The Baltic Dry Freight Index was a “clear signal” that ‘China is back’ baby and that escape velocity growth was just around the corner as global growth was destined to pick up…

20160505_bdiy1

Well, just as we warned very explicitly, the ramp in the index merely reflected the frenzied speculation in industrial metals by the Chinese and as authorities have cracked down on that idiocy, so the Baltic Dry has plunged by the most since November… as real demand punches back.

Read moreSurprise! Baltic Dry Index Plunges Most Since November As Commodity Bubble Bursts

It’s Now Cheaper To ‘Buy’ A Dry Bulk Freight Tanker Than A Starbucks Coffee

From the article:

Goldenport, one of the last shipping companies left on the London Stock Exchange, has delisted from the market and sold off six of its remaining eight vessels for $1…

…”average daily hire rates have fallen below even a vessel’s daily operating expenses.”


tanker starbucks

It’s Now Cheaper To ‘Buy’ A Dry Bulk Freight Tanker Than A Starbucks Coffee:

Just 3 short months ago, we detailed how – thanks to the collapse in China’s growth and massive commodity inventory gluts, the cost of renting a Dry Bulk Tanker was less than the cost of renting a ferrari for a day…

tanker ferrari

As Bloomberg reported at the time,

Rates for Capesize-class ships plummeted 92 percent since August to $1,563 a day amid slowing growth in China. That’s less than a third of the daily rate of 3,950 pounds ($5,597) to rent a Ferrari F40, the price of which has also fallen slightly in the past few years, according to Nick Hardwick, founder of supercarexperiences.com.

Read moreIt’s Now Cheaper To ‘Buy’ A Dry Bulk Freight Tanker Than A Starbucks Coffee

World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever

World’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever:

Before this year the lowest level The Baltic Dry Index had reached was 556 in August of 1986 and the highest was in June 2008 at a stunning 11,612. Today saw the freight index hit a new milestone however, crashing through the 300 barrier for the first time ever – at 298, this is almost 50% below the previous record low.

Baltic Dry Index Record Low

Commodities obviously are saying something very different from “the market”…

Read moreWorld’s Biggest Containership “Hard Aground” As Baltic Dry Crashes Below 300 For First Time Ever

‘Zombie Ships’ – Why Global Shipping Is Even Worse Than The Baltic Dry Index Suggests

“Zombie Ships” – Why Global Shipping Is Even Worse Than The Baltic Dry Suggests:

One glance at The Baltic Dry Index’s collapse is all that most need to see the painful state of the global shipping industry. However, as gCaptain reports, reality is even worse as the boom in so-called “zombie ships” suggests there is no recovery in sight for the beleaguered containership charter market, which is facing its biggest crisis since the 2008 financial crash.

It looks bad…

Baltic-Dry-Index-Collapse

And it’s not just over-supply… (trade is slowing rapidly)…World trade volume rose by only 0.5% YoY in October and was up 2.4% YoY in the first 10 months of 2015, while world trade value in USdollar terms declined by 12.2% YoY in October and was down 11.8% YoY in the first 10 months of 2015.

World Trade Volume Collapse

But, as gCaptain details, reality is even worse for the world’s shipping industry

Analysts agree there is no recovery in sight for the beleaguered containership charter market, which is facing its biggest crisis since the 2008 financial crash.

However, unlike that bleak period for shipping, which ultimately resulted in a strong recovery for charter rates, this time the fundamentals are quite different.

Read more‘Zombie Ships’ – Why Global Shipping Is Even Worse Than The Baltic Dry Index Suggests

Baltic Dry Crashes Under 400 – US Freight Volumes Fall For First Time In 3 Years

US Freight Volumes Fall For First Time In 3 Years As Baltic Dry Crashes Under 400:

For the first time in three years and before that the recession, the total volume of freight moved by road, rail, pipeline, inland waterways and air has fallen Y/Y. Meanwhile, on the high seas, the Baltic Dry has collapsed under 400. 

 

Food and Medicine Will Soon Be Unobtainable

H/t reader squodgy:

“Like I said, if the BDI has effectively stopped, and all transatlantic freighters are held up in port, commodities, food, oil, general cargo is at a standstill, but we still need feeding, warming, healing & the ability to travel.”


bdi

Food and Medicine Will Soon Be Unobtainable:

If product is not moving, then how will you get your food, medicine and other essential supplies? Famed economists, John Williams, from Shadow Stats and Joseph Meyer, Straight Money Analysis, will tell you that the Baltic Dry Index is the best indicator of the economic health of the economy.

The BDI Is At a Record Low

Unfortunately, the BDI, has just dropped another 3.1% to a new record low of 402. To anyone who knows anything about economics, it is clear that the end of this financial era is quickly coming to an end.

Read moreFood and Medicine Will Soon Be Unobtainable