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Hanjin Shipping collapse may be the beginning of the end for profitable global trade

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By David Dodwell, SCMP Hanjin Sooho may mean nothing to you or I, but for perhaps thousands of Chinese exporters, the name is currently the source of despair, perhaps panic. As many of us talk abstractly about faltering global trade growth, Hanjin Sooho is the hard distressing reality of the challenge facing global trade for many traders here or in China. Hanjin Sooho is under arrest in Shanghai port – one of 20 or more vessels trapped by the collapse in August of South Korea’s Hanjin Shipping, at least 10 of them in China alone. Hanjin was the world’s seventh largest shipping line, and the first shipping collapse in 30 years. As Hanjin fell into bankruptcy, so its ships – and the cargos in them – have been frozen wherever they sat. As one expert shipper noted: “Ships have been seized. Some are staying out of port to avoid being seized. Some are just puttering around, loaded or unloaded.” Industry experts say more than 500,000 containers are trapped on these ships, with cargos on bo

Planning for change

By Malory Davies Companies in both retail and manufacturing are facing increasingly challenging markets. Retailers are having to respond to the growth of online shopping and the need to manage multiple sales channels. Manufacturers are realigning their supply chains to reflect changes in global markets – particularly in the motor industry. For many years this has operated on a global scale, but there are moves by the OEMs to integrate their supply chains more tightly, which are having knock-on effects on their suppliers. Les Brookes, chief executive officer of Oliver Wight EAME, says: “Increasing demand for better, faster, cheaper is with us to stay it seems. And customer loyalty is scant. Anticipating what consumers want is key – ideally before they do. Smart organisations are segmenting their customers, markets and channels, and aligning supply chains accordingly. “Some (but not yet enough) are introducing demand analysts into the sales and marketing teams and building deman

Honeywell to aquire Intelligrated

Honeywell has signed an agreement to buy supply chain and warehouse automation company Intelligrated for $1.5billion. Once approved, Intelligrated will become a part of Honeywell’s automation and control solutions business. “E-commerce continues to grow at an unprecedented rate and customer demands for faster delivery times have created a need for warehouse, logistics and fulfillment solutions that can increase productivity and lower costs for our customers,” said Alex Ismail, president and CEO of Honeywell Automation and Control Solutions. “This acquisition fits with our vision for a connected industrial company and a connected worker.” The purchase is forecast to close by the end of the third quarter, subject to conditions and regulatory review.