Here is how a leading Purchase Order Finance Company protects themselves against logistics risks.
It seems like import/export companies are facing more and more challenges with their supply chain and shipping/logistics partners these days. From volatile rates, shipping ports going on strike, and now the bankruptcy of Hanjin. Hanjin is one of the top 10 largest container ship companies in the world. Being in the Purchase Order Financing business we always do our best to stay on top of and avoid these types of risks. How are you protected against these unplanned events?
If you read the headlines, you’d think the world is ending. For some small businesses that are relying on Hanjin to deliver, there could be some major concerns. Late deliveries may be cancelled, seasonal goods can miss prime selling season, or even spoilage of certain goods with short shelf lives are all challenges companies face. For those working with other container ship companies pricing, residual delays, and preferential treatment to those paying the new market rates may cause a bit of a headache.
Here are a few articles to get you caught up on what’s going on with the Hanjin Bankruptcy.
· A Major Container Shipping Line is Bankrupt; Worries for Christmas(GLOBAL TOY NEWS)
Here is what you can do to protect your import/export, wholesale, or ecommerce company from supply chain risks today and in the future:
- If you have goods aboard any Hanjin operated vessel contact your logistics company ASAP and see what your options are.
- If those goods were financed by a PO Funding Company be proactive and notify them right away. They will help guide you through the situation.
- If you have goods ready to go but not on the water yet make sure you are working with a reputable freight forwarder or logistics company to manage your incoming freight. Confirm your new options do not involve Hanjin owned or operated vessels.
- Contact your buyers and let them know you are on top of the situation. 1000s of companies may experience delays and buyers will appreciate your proactive effort in sharing any contingency plans.
If you are currently affected by the Hanjin Bankruptcy in any way it’s important to stay on top of things daily. There will be a lot of changes and adjustments being made to the way you are receiving those goods. Staying on top of your goods will keep you ahead of the rest when it’s time to move and complete your shipments. For those of you who are experience cashflow issues please feel free to contact Star Funding today to see how we can help.