There is some relief for the South Korean electronics giants Samsung and LG following difficulties for Hanjin Shipping, South Korea’s largest container shipping company. Rival Hyundai Merchant Marine has announced that it is introducing 13 new services, in a bid to meet demand.
Worldwide disruption has been caused to the supply of products and parts, due to the financial difficulties being experienced by Hanjin.
Hanjin currently has 89 container vessels stationed off 51 ports around the world. The situation has lead to various companies being unable to access around $14 billion dollars worth of cargo.
In a court filing in the US last Tuesday, Samsung revealed that on two ships it has $38 million worth of goods.
The additional routes created by Hyundai will not provide a quick solution to the problems that have resulted from Hanjin’s difficulties.
With such a large amount of cargo already on-board stranded Hanjin containers, and a backlog having been created, it will take some time to restore order.
Rahul Kapoor, a director at Singapore-based Drewry Financial Research Services, has told Bloomberg that it is likely to be weeks before supply problems are resolved.
“It [Hyundai] will help restore the supply chain,” Kapoor said. “But it’s going to take several weeks for this disruption to be cleared. You can’t mend it overnight.”
It is highly unlikely that consumers will notice any issues within the coming days, but the backlog that has been created may filter through to shop floors in the months ahead.
There is a vast array of good currently stuck on Hanjin containers, from electronics to clothing.