Logistics, Trade Administration and Supply Chain

By Robert Bowman It wasn't as if it was a huge surprise. Rumors that Hanjin was financially imperiled extended back to 2013. The Korean line sought to restructure its debt in April of last year, then submitted a last-ditch liquidity plan in August for raising an additional $450m. At the time, Hanjin expressed optimism that it could come to terms with creditors while remaining in business. But the Korean government refused to bail out the carrier, the plan was rejected, and Hanjin went into receivership on Sept. 1. Then, on Feb. 17 of this year, a South Korean court declared Hanjin bankrupt, ordering liquidation of its assets. Hanjin left a huge mess to be sorted out. It had 89 ships in service and was involved in some two dozen alliances or vessel-sharing arrangements (VSAs) with carrier partners. Huge amounts of money were owed to terminals, crewmembers and supporting vendors, with total outstanding debt of approximately $6bn. It could take years for them to recover even a fra...

The transportation user has a wide range of services at his or her disposal that revolve around the five basic modes: water, rail, truck, air and pipeline. A transport service is a set of performance characteristics purchased at a given price and the variety of transport service is almost limitless. The five modes may be used in combination e.g. piggyback or container movement; transportation agencies, shippers' association and brokers may be used to facilitate these services; small shipment carriers like, UPS or FEDEX may be used for their efficiency in handling small packages or a single transportation mode may be used exclusively. From among these service choices, the user selects a service or combination of services that provides the best balance between the quality of service offered and the cost of that service. The task of service-choice selection is not as forbidding as it first appears because circumstances surrounding a particular shipping situation often reduce the c...

The Certificate of Insurance is a document indicating the type and amount of insurance coverage in force on a particular shipment. In documentary credit transaction, the certificate of insurance is used to assure the consignee that insurance is provided to cover the loss of or damage to the cargo while in transit. A complete certificate of insurance should include the following elements: The name of the insurance company, Insurance policy number, Description of the merchandise insured, Points of origin and destination of the shipment. Coverage is indicated by the terms of sale. For example, for goods sold "FOB", coverage commences once the cargo is on board the vessel and continues until the consignee takes possession at either at the seaport or in-land port of destination, Conditions of coverage, exclusions and deductible, if applicable, A signature by the insurance carrier, underwriter or agent for the same, Indication that the cover is effective at the latest ...