Posted on 09/05/2016 2:00:06 PM PDT by Lorianne
When we first reported about the imminent paralysis of an unknown number of global supply chains and a potential shock in worldwide trade as a result of the historic bankruptcy of Hanjing Shipping, one of the world's largest container shipping companies which handles 8% of Trans-Pacific trade volume for the US market, we concluded that "the global implications from the bankruptcy are unknown: if, as expected, the company's ships remain "frozen" and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos. The good news is that both economists and corporations around the globe, both those impacted and others, will now have yet another excuse on which to blame the "unexpected" slowdown in both profits and economic growth in the third quarter."
However, not even this extreme forecast captured what would happen just 48 hours later, when as the WSJ reported overnight, retailers have gone far beyond simply blaming the Hanjing bankruptcy for their upcoming woes: they are petitioning for a government bailout, or as the WSJ put it, they are "bracing for a blow as they stock up for the crucial holiday sales season, asked the government to step in and help resolve a growing crisis."
(Excerpt) Read more at zerohedge.com ...
I think you are right about your "tough medicine" comment. I just think you're wanting to punish the wrong people. Did the Arabs, Chinese, or whomever, create our burdensome regulations, tort laws, loose morals, poor worth ethic, poor educations system, excessive tax system, expensive healthcare, ...
No, it was our own out of control government and bureaucracy under a fascist arrangement with multinationals and big business.
It's killing the golden goose, our middle class. What would better benefit all Americans and common folk even in other lands, is free trade, slashed regulations except those which ensure a "square deal" for all concerned, tort reform, deregulated healthcare, finance, education, and so forth.
If the Chinese can become the world's premier industrialized nation under semi-communism, then what the hell is our problem, why can't compete under a so-called "free" society?
I used to buy electronics all the time from mom and pop stores in China. These are wonderful, honest, hard working people, as are the mom and pops all around the world. I also bought from American suppliers. The problem isn't people of different lands trading with one another, the problem is big government, big multinationals, big healthcare, big transportation, big auto, big oil, big defense, big education, big banks, ultra rich, ..., have all joined forces against the little people of the world to enslave us and keep us dependent upon them through government regulation that favors them - not us.
It's time we focus on the real problem and start breaking these chains that shackle us. I think Trump knows this is the real problem and hopefully will work to this end by ensuring a level playing field for all, instead of just a few.
This is a logistics discussion, not a philosophy discussion. Have you tried lemon tea with honey?
I can agree with that.....
The root cause, as you so aptly state, is our Government. We the People have, through apathy, allowed a political class and their bureaucratic henchmen to rule our very lives down to the minutest detail.
My comments contain no wish to “punish” other Nations. It is simply to deeply and irrevocably shock the average American citizen back to reality - and in the process restore our Nation. I have no ill will toward the average Chinese or Arab (or anybody else for that matter). I just want our People and our Government to focus on OUR best interest.
That’s going to require a very rude shock to the average citizen.
Big government prostituting itself to the highest bidder is one of our biggest problems. That kind of government is worse than no government at all.
unexpected! drink!
Other shipping companies will immediately pick up that business.
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Seems like the article is talking more about retailers with holiday merchandise now stuck in limbo on the freighters.
Not enough time to get new stuff made and shipped by November. So what happens to their holiday sales season with no merchandise to sell?
Tom, does “Black Swan” or “Trigger” qualify as “honorable mention” in the “And so it begins” drinking game? I mean, there have been like a million “black swans” in the past 5 years alone. And “trigger” almost means “begin,” right? Need a ruling on that.
Or a better effort from FReepers.
Seems to me the bankruptcy trustee will own whatever the bankrupt entity owns, i.e., the shipping contracts.
Trustee to purchasers: Come get your stuff. What’s it worth for me to ship it?
Trustee to ship owners: Come get your ships. You’ll have to off-load them. What’s it worth to you for me to fulfill the shipping contract and return an empty ship to you?
With a little miracle it might even get through the heads of the Free Traitors!
There is no problem but that doesn’t keep today’s corporations from taking advantage of a (perceived) crisis.
Seems to me the bankruptcy trustee will own whatever the bankrupt entity owns, i.e., the shipping contracts.
Trustee to purchasers: Come get your stuff. What’s it worth for me to ship it?
Trustee to ship owners: Come get your ships. You’ll have to off-load them. What’s it worth to you for me to fulfill the shipping contract and return an empty ship to you?
Having been on the sidelines of a large corporate bankruptcy where customers had merchandise already paid for, still residing with the corporation. It was more than six months before they finally got access to their property.
A local large storage facility went bankrupt a while back, a place where we had stuff stored. It was a little over 4 months before we could get our stuff out.
With all the court motions and filings going on, the rescheduling of court dates, the appointment of the trustee, etc., this can drag out interminably.
Any delay more than a few weeks and these retailers are SOL for this season. And since the holiday season is where many finally become profitable for the year (hence ‘Black Friday’) this might also be the ‘final’ season for some.
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