Hanjin Bankruptcy Means Higher Prices for Exporters

The Korean shipping company Hanjin filed for bankruptcy protection in late August and the fallout could mean bad news for Northwest growers.

Executive Director for the Agriculture Transportation Coalition Peter Friedmann said bankruptcy tends to bring everything to a stop.

“That disrupts the supply chain which is devastating for the exporter because the exporter either has products that are perishable or the foreign customer simply says, ‘Sorry, you did not deliver by the contracted delivery date so we’re canceling the order.’”

Friedmann also noted that with less capacity, freight rates will see a dramatic increase of 50 percent.

The bankruptcy could see a similar effect as the port slowdown had on area growers according to Friedmann.

“If we cannot deliver affordably, dependably, that foreign customer will go someplace else.”

Friedmann strongly recommends getting any containers that might be stuck on the port, and if there are any disputes, to reach out to the Federal Maritime Commission.

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