Hanjin Shipping was South Korea’s largest maritime container carrier. It was the seventh largest shipping company in the world. The company handled more than 7 percent of the trade volume between Asia and the United States, and 3 percent of all the shipping containers in the entire world. And on August 31, 2016, Hanjin Shipping filed for bankruptcy in its home country. Two days later, it did the same thing in the United States.
The failure of Hanjin in business can be attributed to the push and pull factors.
Since the year 2000, global supply chain business was experiencing great demand. It was estimated that the demand for container shipping would rise at a rate of 2.2 times global GDP growth. Between 2000 and 2008, that growth averaged 4 percent. There was a definite requirement for major shipping companies to boost capacity to meet the demand.