The shipping industry, being the mainstay of international trade, is not left unaffected by economic highs and lows, which can lead to the downfall of the largest shipping companies. The bankruptcies impact the global chain while showcasing the vulnerabilities and pressures faced by maritime companies to remain competitive.
One of the most notable cases of bankruptcy recently is that of Hanjin Shipping, a South Korean conglomerate which was once the 7th biggest container shipping line in the world.
It was declared bankrupt in February 2017, which shocked the entire sector and led to the stranding of around $14 billion worth of cargo at sea and disrupting supply chains.
However, why did Hanjin Shipping go bankrupt, and why do shipping companies suffer from bankruptcies?
Hanjin Shipping faced this fate due to internal mismanagement and market pressures.
Shipping experienced a prolonged
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