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Subject: Shipping just got more stressfull rss

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Olli Juhala
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So, on Wednesday, world's 7th largest container shipping company, South Korea based Hanjin, filed for bankruptcy protection. They represent about 8% of trans-Pacific shipping traffic, and the bankruptcy has left several fully loaded ships in limbo, unable to unload or being seized by authorities in China and Singapore. Container shipping prices from China to US jumped 50% following the news.

My first thought reading this was: Which boardgame publisher was unlucky enough to get completely hosed by this event?
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Ray Stantz
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CMON Limited has some of their Kickstarter product for The Others on one of the Hanjin ships heading to Europe.
Don't know what will happen for those backers and hope it all works out for them.
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ace hawkster
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Cmon has a whole shipment of the others kickstarter on board hanjin Africa so that's not looking too good.
ninjaBy above post
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Olli Juhala
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acehawkster1973 wrote:
Cmon has a whole shipment of the others kickstarter on board in Africa so that's not looking too good.


Ouchie. That's not fun for anyone.
 
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Alex Norris
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Since all of their creditors cut their money, they can't even afford port fees! Thus making all the ports turn them away. They will be responsible for paying compensation for the "lost cargo" also! It's quite a sad story.. Could someone loan them a couple million so they could just dock their boats please? I feel bad for them! Stuck between a rock and a hard place
 
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T. Ips
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Uhh! That's rough! Hope it gets resolved! It's remarkable how interconnected all things are and how difficulties and benefits spread across systems and companies.
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Jason R
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So these ships just float out in the ocean forever? Do they scuttle the ships? Do the sailors on those ships become ghosts? At least they will have a few games to play!
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Joe Browes
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Heard this news on the BBC this morning, bad news for all consumer products, although obviously board games was my immediate concern too.

According to the report, shipping companies often share cargo space on each others ships, so as well as the Hanjin ships being all at see, there will be Hanjin containers on other ships that will also run into problems.

http://www.bbc.co.uk/news/business-37241727

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Matthew Hague
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Alextnorris wrote:
Stuck between a rock and a hard place


More like stuck between the devil and the deep blue sea.
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Jordan Stewart
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Yikes, I wonder if kickstarter game Snowblind: Race for the Pole got tangled up in this as well... They claimed to be shipping around now.
 
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RJD
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But the REAL question is, what does this mean for Up Front?

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Mindy Basi
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I hope people who might be in the know about this kind of thing can keep us informed what happens to the cargo in this case -- you don't think about distribution all that much but it's crucial of course. I am very curious what companies do in this situation.

US news is so caught up in the presidential race and other national news that we rarely hear about anything like this, we need the BBC for global news!

It seems very unlikely that any games on those ships will be distributed where they are going before next year, by the time they get them off the ships and re-delivered. I am sure the small game companies don't have the means to ransom their cargo, so to speak. What a shame.

Just a quick humantarian angle, from the BBC link above:

Quote:
Each stranded ship has about 15 to 25 crew on board. Unable to call at any port, they will have to depend on the supplies they have with them until a solution can be found. While food should last long enough, they will eventually need fuel.

In a worst-case scenario, should they find themselves unable to pay for fuel being delivered by a shuttle, they would risk running into serious trouble. In that case though, nearby ports would likely be forced to accept them.

Aside from the prospect of being stuck for weeks at sea, the sailors will also face uncertainly over their wages. Most of them are not actually hired by Hanjin but by crewing agencies. Those agencies are unlikely to get paid by Hanjin and therefore won't be able to pay the crews.

"Unless someone steps in very quickly - and there is no sign of that - this will last a very long time," according to Mr Jensen.
Ships, cargo and crew might find themselves stuck for weeks, if not months, without knowing when and where their current voyage will end.
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True-Neutral
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Kwill2 wrote:
I hope people who might be in the know about this kind of thing can keep us informed what happens to the cargo in this case -- you don't think about distribution all that much but it's crucial of course. I am very curious what companies do in this situation.

US news is so caught up in the presidential race and other national news that we rarely hear about anything like this, we need the BBC for global news!

It seems very unlikely that any games on those ships will be distributed where they are going before next year, by the time they get them off the ships and re-delivered. I am sure the small game companies don't have the means to ransom their cargo, so to speak. What a shame....


In other words, We're looking at another West Port problem. Unfortunately, while L.A. had plastic and rotten fruit sitting around at the docks the situation involves a stranded ship with possibly hundreds of thousands(if not lees than that) of dollars worth of product, including the Kickstarter stuff. The fact that they could be boarded by pirates or even worse is not excatly kissing any boo-boos either.
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Mindy Basi
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The reason:

Quote:
A drop in orders has led to overcapacity and depressed freight rates, as well as an increase in debts.

"Korean shipping companies have suffered large losses largely because charter rates on leased vessels were fixed in 2010 at a high level while actual shipping rates have fallen," Nomura analyst Young Sun Kwon said.

The South Korean government is now looking to undertake a painful reorganisation of the entire industry, which will require major retrenchments.


Had not thought of pirates...wow.soblue
 
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Russ Williams
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Kwill2 wrote:
Had not thought of pirates...wow.soblue


Aye. They be lookin' fer all these treasures, matey!
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Olli Juhala
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Kwill2 wrote:
I hope people who might be in the know about this kind of thing can keep us informed what happens to the cargo in this case -- you don't think about distribution all that much but it's crucial of course. I am very curious what companies do in this situation.

US news is so caught up in the presidential race and other national news that we rarely hear about anything like this, we need the BBC for global news!


Which is rather weird, since US is one of the most affected countries by this, what with trans-Pacific trade being such a major factor.
 
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Freelance Police
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Don't companies have insurance for these sort of problems?

Not that waiting for your insurance money to come in when you have backers and other customers waiting is a good thing. See: Eagle Games.
 
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Arthur Cormode
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So, container prices were depressed because of oversupply and now that one company that represented 8% of the traffic goes under, prices go up 50%?

Sounds like gouging to me?
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Joerg Schaefer
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Thormodr wrote:
So, container prices were depressed because of oversupply and now that one company that represented 8% of the traffic goes under, prices go up 50%?

Sounds like gouging to me?


And people on BGG complain about evil boardgame companies buying up their competitors and misusing their market power.
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J.L. Waz
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Didn't the big German game printing company just open shop in Indiana?
I wonder if they saw this scenario coming...
 
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Olli Juhala
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Thormodr wrote:
So, container prices were depressed because of oversupply and now that one company that represented 8% of the traffic goes under, prices go up 50%?

Sounds like gouging to me?


Sounds like a normal hiccup in something that's highly market driven. I would expect the oversupply to drive prices back down from a temporary increase.

...which may not be a good thing after all, in the long term. Implications of uncertainty in getting manufactured goods out of China are rather huge.
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Dan
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Shader10 wrote:
Thormodr wrote:
So, container prices were depressed because of oversupply and now that one company that represented 8% of the traffic goes under, prices go up 50%?

Sounds like gouging to me?


Sounds like a normal hiccup in something that's highly market driven. I would expect the oversupply to drive prices back down from a temporary increase.

...which may not be a good thing after all, in the long term. Implications of uncertainty in getting manufactured goods out of China are rather huge.


This is starting to sound like a Container session report!

On a serious note, hope all the affected sailors at sea get home safely.
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Daniel
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Wow, sad news. One usually doesn't even think about these things when receiving packages.
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Stephen Cooper
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Shader10 wrote:
Thormodr wrote:
So, container prices were depressed because of oversupply and now that one company that represented 8% of the traffic goes under, prices go up 50%?

Sounds like gouging to me?


Sounds like a normal hiccup in something that's highly market driven. I would expect the oversupply to drive prices back down from a temporary increase.

...which may not be a good thing after all, in the long term. Implications of uncertainty in getting manufactured goods out of China are rather huge.
The global container industry has been hemorrhaging money ever since the 2008 global financial crisis, Hanjin has recently been losing money on each container it moved to the tune of about $300 (multiply that by its network of about 600k TEUs and that is very significant) it has only been kept "afloat" by being owned, and supported, by the South Korean government, which has finally given up on the company.

There is no gouging going on here, the industry has wholesale mothballed container ships to take out capacity in an attempt to keep prices stable and sustainable, I think what we're seeing are the first stages of a permanent price adjustment, otherwise the whole network could come tumbling down.
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Vaughn Van Asten
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Wow. There is a lot of stuff stranded at sea right now. Per the BBC article about 540,000 containers are aboard the ships that are unable to dock. The retail value of a single container's products can be anywhere from $20,000 to $3.6 million. If every stranded container only has $20,000 of product in it that's $10.8 billion; it's very possible that there is more than $50 billion of product in limbo right now. Even if we only value it by manufacturing cost there are tens of billions of dollars aboard those ships.
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