Rough seas for global shipping | The Economist
When the shipping firm Hanjin went bust in September, $14bn worth of goods were stranded at sea. Discover how the shipping industry has faced strong headwinds since the financial crisis of 2008.
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The global shipping industry has been weathering rough seas for years. It is responsible for 90% of the world's traded goods but a price war over freight rates has hit the industry hard.
The industry has suffered from an over supply of ships and stuttering commodity prices, sending a container from Shanghai to Europe costs half what it did two years ago.
In late 2016, one of the world's biggest shipping companies, Hanjin, went bust. 66 ships loaded with $14.5 billion of goods, were left stranded at sea.
One of the biggest costs is from hauling empty containers. In a bid to stay afloat shippers have begun to pool resources. In 2015 Maersk and MSC launched 2M, a partnership to share space on their vessels. Others might consider following suit. Of the 12 biggest companies that have published results for the last quarter, 11 announced huge losses.
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Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7
The global shipping industry has been weathering rough seas for years. It is responsible for 90% of the world's traded goods but a price war over freight rates has hit the industry hard.
The industry has suffered from an over supply of ships and stuttering commodity prices, sending a container from Shanghai to Europe costs half what it did two years ago.
In late 2016, one of the world's biggest shipping companies, Hanjin, went bust. 66 ships loaded with $14.5 billion of goods, were left stranded at sea.
One of the biggest costs is from hauling empty containers. In a bid to stay afloat shippers have begun to pool resources. In 2015 Maersk and MSC launched 2M, a partnership to share space on their vessels. Others might consider following suit. Of the 12 biggest companies that have published results for the last quarter, 11 announced huge losses.
Daily Watch: mind-stretching short films every day of the working week.
For more from Economist Films visit: http://films.economist.com/
Check out The Economist’s full video catalogue: http://econ.st/20IehQk
Like The Economist on Facebook: https://www.facebook.com/TheEconomist/
Follow The Economist on Twitter: https://twitter.com/theeconomist
Follow us on Instagram: https://www.instagram.com/theeconomist/
Follow us on LINE: http://econ.st/1WXkOo6
Follow us on Medium: https://medium.com/@the_economist