$14 billion worth of cargo has been stranded at sea over the past week after Hanjin Shipping Co. filed for bankruptcy protection. As one of the world’s biggest shipping lines, well-known brands such as Samsung and American Apparel & Footwear Association have been affected. Samsung in particular has considered the idea of using cargo planes to recover their devices. 39 ships are said to be circling or anchored outside ports. If they dock, there is an uncertainty as to who will pay the unloading fee. Due to this, for 12 days, crews have been forced to survive on rations. Cut- backs are now taking place to ensure there is enough for the coming days.
Because of the impact this can have on companies, a conference call of 150 members was set up. Protection was granted for Korean and U.S ports but not for Asian and European destinations, leading to much confusion and still no solution. It is yet to have an effect on Christmas stocks, but if the wait lasts any longer, companies may have to search for an alternative way to supply their products in time for the holiday season. It will have a major impact on various supply chains and sales, proving costly for all involved, especially due to a 55% rise in shipping costs earlier this week.
Read more about the bankruptcy and its effects here.
Burning competition – literally
Samsung has recalled its Galaxy Note 7 model after customers experienced exploding devices, or in some cases devices catching fire, while charging. It has not been confirmed whether the batteries were the problem, and Samsung has declined to name suppliers which could be at fault for the problem.
Reports have cited the competition with Apple to be a primary factor. In a race to secure first place in delivering the smartphone, quality testing could have been sidelined. Competition between the two companies is now rife as Apple is set to release its new iPhone 7 models.
The consequences for Samsung are now telling and will hit company profits. Instead of creating a greater image, it has worsened from this dangerous mishap. An estimated 2.5 million units have been recalled, which could result in a $1.34 billion loss for the company. Furthermore, current marketing campaigns have halted, as the company is now busy creating ways to regain trust from customers and restore its image. Shipments of the model are expected to be delayed as additional testing is performed.
Find out more about Samsung’s recall here.
Van of the future
Vision Van is a new concept car envisioned by Mercedes-Benz Vans and Matternet, a drone startup company. It will serve as a launch and landing pad for Matternet’s M2 drones. The vans will be installed with technology which simultaneously enables the drones to recharge and reload without the need for human intervention. Stored data could then act as proof of delivery for companies. A key feature of this development allows drones to be dispatched if traffic or other obstacles come in the way of a delivery, optimizing distribution.
Mercedes has invested an undisclosed amount in Matternet, which could lead to further investments if this project takes hold. However, $9.5 million has been raised so far, leaving $2 million to go of Matternet’s targeted $11.5 million. This is a big step towards future delivery, enabling human and drones to be able to work together more efficiently than before.
Check out the information and video here.
Have a great weekend!