Hanjin Shipping Co. Ltd., to pull out of Port of Portland

[DaLincolnJones]

www.bluefish.org/portport.htm

www.oregonlive.com/.../10/hanjin_shipping_plans_to_stop.htm

www.transportworkers.org/node/787

others have already gone and from what I have read this will spell higher costs to the last two big players that use the port.

This could signal the end of Portland being an international shipping port.

Guess we can look at changing the name to something more fitting, how about "Weirdland"

 

[MARIS61]

The Port will be fine.

 

[barfo]

The Port will be fine.

Yes, but its chances of getting pregnant are reduced. Could still happen tho.

barfo

 

[PHXBlazer1]

This is actually a pretty big deal. This is a HUGE shipping company, and them pulling out of the Portland market has big ramifications. I can't give you an honest count of jobs that will be lost, because that's not what I do. But I can tell you that the Portland economy is losing roughly $260 million dollars per year if Hanjin leaves. This sucks for the Port of Portland. If this affects you, move to Coos Bay

 

[MARIS61]

We were fine before they came 20 years ago. Overall it's great for Real Americans, because it mostly just raises the cost of importing slave labor goods from Asia. This may help convince companies like Columbia Sportswear to have their goods made in America.

 

[Eastoff]

This is actually a pretty big deal. This is a HUGE shipping company, and them pulling out of the Portland market has big ramifications. I can't give you an honest count of jobs that will be lost, because that's not what I do. But I can tell you that the Portland economy is losing roughly $260 million dollars per year if Hanjin leaves. This sucks for the Port of Portland. If this affects you, move to Coos Bay

Eww I'd rather move to Tacoma, where the company is moving.

 

[Nikolokolus]

We were fine before they came 20 years ago. Overall it's great for Real Americans, because it mostly just raises the cost of importing slave labor goods from Asia. This may help convince companies like Columbia Sportswear to have their goods made in America.

You make me laugh.

 

[BrianFromWA]

Eww I'd rather move to Tacoma, where the company is moving.

Who'd have thunk that Tacoma could steal shipping from both Portland and Seattle? Last year, they took Grand Alliance (consortium of 4 shipping lines that made up about 20% of Seattle's shipping traffic) while the unions were kvetching about the proposed SoDo basketball arena. Hanjin also was about to leave Seattle for Tacoma, but recently signed a new lease until 2025. Partially because:

Under terms of a contract to come before the port commission Dec. 11, the port will pay Hanjin a one-time $4 million fee upon execution of the contract, add capital improvements of up to $35 million, accept a less-favorable rate structure, and hand over five cranes to Hanjin for $1 each.

As for whether or not they'll be replaced soon, Seattle's port had a reason for why they gave Hanjin such a good deal:

“We’re trying to do the best to preserve (Terminal) 46,” (Port Commissioner Rob Holland) said, pointing out that activity there accounts for 20 percent of the cargo moving through the port, and 3,200 direct and indirect jobs. “Close to 20 percent of business got hit with Grand Alliance moving to Tacoma; it’s very critical that we don’t have another terminal lose a customer..."Given the above, it is not likely that the port would find a replacement tenant in the 5-10 year horizon,” the agenda documents said.

 

[BLAZINGGIANTS]

That region took a hit when NOAA came to Newport. Now, they're sticking it to us.

 

[BLAZER PROPHET]

www.bluefish.org/portport.htm

www.oregonlive.com/.../10/hanjin_shipping_plans_to_stop.htm

www.transportworkers.org/node/787

others have already gone and from what I have read this will spell higher costs to the last two big players that use the port.

This could signal the end of Portland being an international shipping port.

Guess we can look at changing the name to something more fitting, how about "Weirdland"

How about MODA Port?

 

[jlprk]

This is actually a pretty big deal. This is a HUGE shipping company, and them pulling out of the Portland market has big ramifications. I can't give you an honest count of jobs that will be lost, because that's not what I do. But I can tell you that the Portland economy is losing roughly $260 million dollars per year if Hanjin leaves. This sucks for the Port of Portland. If this affects you, move to Coos Bay

Won't remaining shipping companies do everything Hanjlin's been doing? Consumers still want all those goods shipped to stores and factories. Competitor shippers will see their business increase by the $260M.

 

[DaLincolnJones]

Won't remaining shipping companies do everything Hanjlin's been doing? Consumers still want all those goods shipped to stores and factories. Competitor shippers will see their business increase by the $260M.

here is the failure in your logic., The port plans to raise the costs to the remaining two companies to compensate for the loss of revenue from Hanjlin. There are already rumblings of another pullout due to both the long shore men and the expected shared costs.

 

[jlprk]

here is the failure in your logic., The port plans to raise the costs to the remaining two companies to compensate for the loss of revenue from Hanjlin. There are already rumblings of another pullout due to both the long shore men and the expected shared costs.

I don't understand why the Port will get less revenue, unless it's based on fixed cost instead of cost per container.

There's something wrong with how the Port charges the remaining companies. The companies should continue paying the same percentage of their own revenues, which will increase.

 

[BLAZINGGIANTS]

We use Hanjin, but they usually land on the East Coast, and rail our containers across the US to the PDX rail yard, and then we have it trucked to our warehouse. The basic fact that Hanjin is leaving the Port of Portland will mean additional cost for freight (empty containers will now have to be trucked up to Tacoma instead of back to the Port of Portland), and thus higher total product costs, and we all know who pays for higher product costs. We're a small company, so the impact will be minimal, but I could see it being an issue for bigger companies.

Portland-based companies that use Hanjin landing via the port will now have to pay additional amounts to have goods trucked down from Tacoma. If Washington has weight restrictions on containers, this could create another issue for companies that packed containers to the brim (Oregon's restrictions are very generous).

 

[DaLincolnJones]

I don't understand why the Port will get less revenue, unless it's based on fixed cost instead of cost per container.

There's something wrong with how the Port charges the remaining companies. The companies should continue paying the same percentage of their own revenues, which will increase.

I agree that they should not be taken advantage of, but that is what is on record as being the case.

 

[DaLincolnJones]

We use Hanjin, but they usually land on the East Coast, and rail our containers across the US to the PDX rail yard, and then we have it trucked to our warehouse. The basic fact that Hanjin is leaving the Port of Portland will mean additional cost for freight (empty containers will now have to be trucked up to Tacoma instead of back to the Port of Portland), and thus higher total product costs, and we all know who pays for higher product costs. We're a small company, so the impact will be minimal, but I could see it being an issue for bigger companies.

Portland-based companies that use Hanjin landing via the port will now have to pay additional amounts to have goods trucked down from Tacoma. If Washington has weight restrictions on containers, this could create another issue for companies that packed containers to the brim (Oregon's restrictions are very generous).

durring the long shore strike, the average container cost to the company has been one thousand per. They have lost 400 million during the bull shit with the union

 

[barfo]

Won't remaining shipping companies do everything Hanjlin's been doing? Consumers still want all those goods shipped to stores and factories. Competitor shippers will see their business increase by the $260M.

Not necessarily. Those goods will still be shipped, but they won't necessarily be shipped from Portland. Several reasons:

1) Existing contracts/relationships with hanjlin
2) Cost
3) Shipping routes (the remaining carriers may not go the same places Hanjlin went)
4) Switching costs may be low (it may be just as easy to truck things to/from Tacoma as Portland, depending on where the freight is coming from/going to)
5) Speed - with fewer shippers, there will be fewer ships leaving Portland, and for some cargo, time may be a factor.

barfo

 

[DaLincolnJones]

Not necessarily. Those goods will still be shipped, but they won't necessarily be shipped from Portland. Several reasons:

1) Existing contracts/relationships with hanjlin
2) Cost
3) Shipping routes (the remaining carriers may not go the same places Hanjlin went)
4) Switching costs may be low (it may be just as easy to truck things to/from Tacoma as Portland, depending on where the freight is coming from/going to)
5) Speed - with fewer shippers, there will be fewer ships leaving Portland, and for some cargo, time may be a factor.

barfo

Yep..their fixed costs are now to be divided between two instead of three. And as I stated earlier one of the other two is considering a change as well.