Investigation of bankruptcy in shipping industry - liner shipping

In liner shipping, the demise of Hanjin Shipping (HJS) in 2016 has shocked the industry as a whole and created several problems across the supply chain. Despite the extreme consequences, not much research has been done in relation to the fundamental reasons of bankruptcies. Thus, the immediate objec...

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Main Author: Lau, Rui Wen
Other Authors: Chiu Sai Hoi, Benson
Format: Final Year Project
Language:English
Published: 2018
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Online Access:http://hdl.handle.net/10356/74746
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-747462023-03-03T17:01:41Z Investigation of bankruptcy in shipping industry - liner shipping Lau, Rui Wen Chiu Sai Hoi, Benson School of Civil and Environmental Engineering DRNTU::Engineering::Maritime studies::Maritime management and business In liner shipping, the demise of Hanjin Shipping (HJS) in 2016 has shocked the industry as a whole and created several problems across the supply chain. Despite the extreme consequences, not much research has been done in relation to the fundamental reasons of bankruptcies. Thus, the immediate objective of this paper is to investigate the underlying reasons behind bankruptcies from 1986 to 2016 so as to provide a better understanding to adapt to the competitive and volatile business landscape. To meet this desired objective, this study will employ a variety of quantitative and qualitative methods through surveys which were based on PESTLE framework, interviews with key industry players and in depth study of 3 insolvent companies – United States Lines (USL), Cho Yang Shipping (CYS) and Hanjin Shipping (HJS). Subsequently, these findings led to the development of a framework which later helps to draw and establish relationships between the relevant interdependent factors. Upon examination of these results, the study has further identified the main contributory factors leading to the insolvency of the abovementioned companies. A significant correlation was also observed between financial performance and the various factors – poor economic conditions, intense competition, trade regulations, government policies, top management and culture, limited resources as well as ineffective investments, operational and risk management strategies which will be discussed in findings and analysis. Lastly, to provide new perspectives and ideas, this study concluded with various lessons from key companies e.g. Neptune Orient Lines (NOL) and Maersk Line (MSL), along with a development of a guideline that incorporates risk, financial and strategic elements. In summary, because of the recent trend of bankruptcies and the bleak future outlook, this study hopes to minimize risk of bankruptcies by understanding the key reasons and thus, provide new and different perspectives to ensure their survival in short run and prepare themselves for the long term future. Bachelor of Science (Maritime Studies) 2018-05-23T08:06:07Z 2018-05-23T08:06:07Z 2018 Final Year Project (FYP) http://hdl.handle.net/10356/74746 en Nanyang Technological University 61 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Engineering::Maritime studies::Maritime management and business
spellingShingle DRNTU::Engineering::Maritime studies::Maritime management and business
Lau, Rui Wen
Investigation of bankruptcy in shipping industry - liner shipping
description In liner shipping, the demise of Hanjin Shipping (HJS) in 2016 has shocked the industry as a whole and created several problems across the supply chain. Despite the extreme consequences, not much research has been done in relation to the fundamental reasons of bankruptcies. Thus, the immediate objective of this paper is to investigate the underlying reasons behind bankruptcies from 1986 to 2016 so as to provide a better understanding to adapt to the competitive and volatile business landscape. To meet this desired objective, this study will employ a variety of quantitative and qualitative methods through surveys which were based on PESTLE framework, interviews with key industry players and in depth study of 3 insolvent companies – United States Lines (USL), Cho Yang Shipping (CYS) and Hanjin Shipping (HJS). Subsequently, these findings led to the development of a framework which later helps to draw and establish relationships between the relevant interdependent factors. Upon examination of these results, the study has further identified the main contributory factors leading to the insolvency of the abovementioned companies. A significant correlation was also observed between financial performance and the various factors – poor economic conditions, intense competition, trade regulations, government policies, top management and culture, limited resources as well as ineffective investments, operational and risk management strategies which will be discussed in findings and analysis. Lastly, to provide new perspectives and ideas, this study concluded with various lessons from key companies e.g. Neptune Orient Lines (NOL) and Maersk Line (MSL), along with a development of a guideline that incorporates risk, financial and strategic elements. In summary, because of the recent trend of bankruptcies and the bleak future outlook, this study hopes to minimize risk of bankruptcies by understanding the key reasons and thus, provide new and different perspectives to ensure their survival in short run and prepare themselves for the long term future.
author2 Chiu Sai Hoi, Benson
author_facet Chiu Sai Hoi, Benson
Lau, Rui Wen
format Final Year Project
author Lau, Rui Wen
author_sort Lau, Rui Wen
title Investigation of bankruptcy in shipping industry - liner shipping
title_short Investigation of bankruptcy in shipping industry - liner shipping
title_full Investigation of bankruptcy in shipping industry - liner shipping
title_fullStr Investigation of bankruptcy in shipping industry - liner shipping
title_full_unstemmed Investigation of bankruptcy in shipping industry - liner shipping
title_sort investigation of bankruptcy in shipping industry - liner shipping
publishDate 2018
url http://hdl.handle.net/10356/74746
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