HANJIN

Haha. Ya why not keep giving away our wealth to such a corrupt and unethical, unsustainable and backwards country....they need a new revolution to help correct the other revolution. Of course it's americas fault, right?

 

If you want to know how Mexico really works, read La Capital by Jonathan Kandell. You'll be astonished at the institutionalized corruption. I was and I've lived in 7 countries and currently live in Washington DC. They make us look honest.

 

They have others that will follow.. Trust Me...

 

Looks like a good time for Russian shipping to fill the gap.

 

I heard a report that Hanjin provided 3% of the world shipping. If true, More making of a mountain out of a mole hill.

 

Yep I recently watched a documentary about a town in Mexico. Long story short by the end of the documentary the the ones making and running the drugs were now federal police literally and officially and still making and running drugs.

 

Hyundai Merchant Marine wants to pick up parts of Hanjin. I don't think that will work, there are too many ships which has lowered rates. Hyundai Merchant Marine isn't exactly a healthy company. They might not be far from bankruptcy themselves. Here's their chart:

KR:011200
Hyundai Merchant Marine Co. Ltd. (KRX)

I was going to say bs to your numbers, but there is some truthiness to them. That must have been wild.

I don't think it was 3500 krw = 1 usd.





I was also going to say 200 debt to equity ratio is impossible. Upon further review, that number was about right at the peak of the crisis. I'm thinking that the astronomical levels of debt are confined to the shipping industry, and companies like Samsung and LG are ok. But I've been wrong before.

 

Your chart shows official exchange rates. During the 1997 crisis the unofficial rate swung far more wildly. It was so bad about half the merchants at the Itaewon market refused to take American dollars, unheard of before or since the crisis.

The high debt to equity ratios weren't isolated to shipping interests. Every Chaebol had jacked up their borrowing in the '90's, primarily to fund outsourcing of manufacturing to other countries. At that time I did business exclusively with Korean companies, but most of the manufacturing was in China, Sri Lanka, Mexico, and Indonesia.

Today I see the same crazy uptick in debt levels that are unsustainable. This time consumer debt is a huge factor in Asia, deeply troubling to traditional thinking from older generations that see younger generations spending their way to the illusion of wealth.

 

Bear in mind many a "trucker" comes to this industry after having had a career. For example, I spent three decades sourcing production overseas for major brand names and retailers in the US and Europe. Other drivers may have been stock analysts or medical doctors. Just because we drive a truck doesn't mean that's all we have ever done.

 

Nope. I WAS the boss. Recession and poor quality control management by my factories on key accounts ended up losing a ton of profitable business, business that took years just to have a chance to bid on multiyear contracts. After going a year without taking a salary to try and keep it afloat I threw in the towel. Wish I had done this sooner. I'm having way more fun with far less stress.