Shipping Meltdown! (or not?)

Santa Claus isn’t coming this year! Global shipping has collapsed! Big ships are stranded as the companies can’t even pay the docking fees!

Clearly, it’s time to panic. The bankruptcy of Hanjin shipping has created a wave of horrifically bad stories predicting the end of international trade as we know it. Recession must be just around the corner as the global system collapses, right?

Um, no. Not even close. The story we have been told is a good example of two key features of financial reporting today. The first is that no one has the slightest idea what they are talking about and the story is completely free of the context anyone might need to understand it. The second is that the only big news is bad news – probably in part due to the first problem.

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