Market Data
October 4, 2016
Steel Buyers Basics: Supply Chain Risk - Overseas Freight
Written by Mario Briccetti
The following article was produced by SMU Steel 101 instructor and consultant, Mario Briccett of Briccett and Associates. This is one in a series of articles called “Steel Buyers Basics” which can be found in the Steel Market Update website. You can reach Mario by email at: MarioBriccetti@gmail.com.
Almost every day last month the WSJ had an article about the supply chain disruption caused by the bankruptcy of Hanjin Shipping. Hanjin’s bankruptcy has stranded about 100 container ships, loaded with $14 billion in goods, all over the world. Without the ability to pay their bills, these ships can’t dock, can’t go through the Panama Canal and can’t even remove stranded passengers and crew. Since Hanjin ships are container ships, not much, if any steel, is being held up. However I am reminded of a similar situation I once faced earlier in my career.
