Zerohedge: "Tremendous Ripple Effects" - Retailers Demand Bailout After Hanjin Collapse Paralyzes Trade
To an extent, the group has a point as the "clogged supply-chain" chaos unleashed by the Hanjing bankruptcy is rapidly spreading. As reported Wednesday, after the company's bankruptcy protection, on Wednesday, terminal operators, ports, cargo handlers, truckers and others have refused to handle its cargo, for fear they won’t get paid. That is causing turmoil at U.S. ports and beyond, said shippers, importers and freight forwarders. Then as we followed up yesterday, U.S.-bound cargo has been delayed at the point of origin, and cargo-laden Hanjin ships are unable to get into U.S. ports. Worse, already delivered cargo is sitting unhandled, clogging ports and occupying containers needed elsewhere. Several Hanjin ships have been seized by creditors or barred from shipping cargo from Busan, South Korea’s main port, and vessels have been turned away from ports in the U.S., China, Canada, Spain and elsewhere.and (my emphasis):
Those most likely to be affected include Wal-Mart, Target, J.C. Penney and clothing retailers. As the WSJ adds, a target spokeswoman said the retailer is watching development closely and assessing the situation. Marilee McInnis, a spokeswoman for Wal-Mart, said, “Right now, we are waiting to hear the final determination on bankruptcy proceedings and the implications to their current assets before we will be able to assess any impact.”Wal mart! Clothes stores? Effecting real people yet?
This seems to me like a bigger problem than previous banking ones, since the banking problems are essentially numbers on a screen and manipulations from criminally insensitive people. This is a problem with a real thing. A shipping company!
But who knows. News that has seemed just as dire has been covered up but this one seems hard for me to understand how it could be covered up! Chinese will probably bail everyone out again, because if the Chinese are good for something, it's supporting the cabal.