
Why the bankruptcy of shipping giant Hanjin has so many companies worried - walterbell
http://www.salon.com/2016/09/12/that-sinking-feeling-why-the-bankruptcy-of-shipping-giant-hanjin-has-so-many-companies-worried/
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SixSigma
This is the Cobweb Model / Pork Cycle in effect. [1][2]

Farmer goes to market, sees Pigs are selling well. So he goes back to his farm
and breeds pigs. He looks forward to his profit once his pigs have all grown
up.

Problem is, so did everyone else at the market.

So in a year's time when everybody takes their grown pigs to sell, there are
too many.

The container shippers thought that payday was around forever, so they
invested in more ships and super ships with 15k+ TEUs.

The real surprise is why they all thought they would be the last shipping line
standing.

[1]
[https://en.wikipedia.org/wiki/Cobweb_model](https://en.wikipedia.org/wiki/Cobweb_model)

[2]
[https://en.wikipedia.org/wiki/Pork_cycle](https://en.wikipedia.org/wiki/Pork_cycle)

