The Hanjin Effect: Equipment Shortages & How Milestone is Here to Help

In response to the Hanjin Shipping bankruptcy, Milestone continues to offer an expansive fleet to minimize disruption for customers. Please find the latest news regarding this matter below.

An excerpt from Reuters:

By Jim Christie, Lisa Richwine and Tom Hals

The bankruptcy of Korea’s Hanjin Shipping Co Ltd (117930.KS) is causing ripple effects for importers bringing goods from Asian factories to U.S. malls by creating a shortage of trailers to move ocean-shipping containers on U.S. roads.

The world’s seventh-largest container carrier has more than 500,000 containers, and many already are clogging up ports and truck yards, tying up trailers that cannot be used to handle other cargo. That is beginning to worry freight handlers at U.S. West Coast ports and is the first sign of knock-on effects from the failure of Hanjin.

The problem stems from Hanjin’s shortage of cash, which has stranded $14 billion of cargo owned by companies such as HP Inc (HPQ.N), Home Shopping Network (HSNI.O) and Samsung Electronics Co Ltd (005930.KS). Much of the cargo is on more than 100 ships at sea because cargo handlers, tug operators and ports are refusing to work with Hanjin unless they get paid up front.

A lawyer for the shipper did not immediately respond to a request for comment.

Terminal operators in the California ports of Long Beach and Oakland are not taking back empty containers. Many in the industry doubt Hanjin will pay storage costs, and a growing number of empty containers and the trailers they sit on are stranded.

“If it’s not fixed in the next couple of weeks, I think you’ll see a huge ripple effect across the industry,” said Weston LaBar, executive director for the Harbor Trucking Association in Long Beach, California.

LaBar said there are thousands of Hanjin containers on trailers out of circulation, and the uncertainty surrounding Hanjin appears to be pushing truckers to lock in trailers from his organization’s pool.

“We doubled in bookings this morning,” LaBar said. “We have availability, but we’re getting to the point where we may be leased out for our chassis.”

Shipping executives said there is ample supply of shipping containers, but trailers are limited. The West Coast ports previously have experienced brief shortages even when the stream of trade is functioning normally.

The Hanjin collapse has exacerbated the problem.

Read the full article here or request a quote here.


Press Release: Milestone Equipment Holdings Adds Don Clayton as Chief Financial Officer

ST. CHARLES, MO (September 12, 2016) – Milestone announces the addition of Don Clayton who joins the team as Executive Vice President and Chief Financial Officer. Clayton will be based in St. Charles, MO and will report directly to Jordan Ayers, President and Chief Operating Officer.

“I am very excited to join the Milestone team,” says Clayton. “The team has built an outstanding business through its customer-centric, flexible approach to leasing. We will continue to make that our core mission, while building additional processes and controls to further scale the business. I see tremendous opportunities for growth and we will be prepared to capitalize on those opportunities.”

Clayton has 18 years of experience working in the industrial distribution and financial services industries, including eight years as Chief Financial Officer of a multi-billion-dollar nationwide distributor and seven years in the financial services audit practice at PricewaterhouseCoopers. He has extensive experience in strategic planning, financial reporting and internal controls. He has also played key roles on several acquisitions and capital market transactions.

“Don brings the experience and philosophy we want to take our organization to the next level,” says Ayers. “He has built world-class back office operations and has led numerous strategic transactions. Just as importantly, he shares our passion for customer service and our commitment to stay nimble and innovative as we grow.”

Clayton received his Bachelor of Science in Business Administration with an emphasis in Accounting from Southeast Missouri State University. He is a Certified Public Accountant.