If you think this is mostly a bit of local bother that will smooth itself out as the dislocations of a reawakening global economy ease off, you might be in for a shock. The factors that have driven Asia-Europe container rates to record levels of more than US$10,000 (RM41,500) per 40-foot box aren’t simply a temporary coordination problem. Returning to a semblance of normality could take years.
The container shipping industry is usually such a well-oiled machine that we barely notice it. Vessels carrying 10,000 containers can arrive at dawn and depart with new cargo by sunset.
Rates have at times drifted so low that in early 2016 you could shift a tonne of goods from Shanghai to Rotterdam for about US$10 (RM41.47) – and even then, the world’s biggest shipping line, AP Moller-Maersk A/S, was able to turn a modest operating profit.
The flip side of that is that when things go wrong, they go seriously wrong.
Was at my local tire shop this week. They’re having all sorts of trouble sourcing what they need these days.
Most of their supply comes from North America but covid shut down all sorts of factories long enough so that now there’s shortages.
Doesn’t China own a lot of ports? They wouldn’t slow shipping would they?
Or you could read the article which explains exactly what is going on….
Read articles?!
I thought we’re supposed to just glance headlines and then fire off half-baked, uninformed preconceived opinions in the comments sections!
Fire away.
Hundreds of thousands died for your right to do so (at least for a few more months. After the next “election,” who knows.)
It took 3 months for me to acquire a new smaller toolbox from Home Depot. The Husky 3 Drawer unit I wanted was sold out for months here in Calgary …. Was floored the other day when the Local Store in Shawnessy had 3 on the shelf.
I’m betting Auto parts along with pretty much anything manufactured anywhere outside of North America is in for a rough costly ride.
I deliver truck parts for a truck dealership and I see dozens of backorders ony invoices every single day.
To make things worse, aren’t we past the date when all seagoing vessels have to stop using bunker oil and switch over to something way more expensive in order to save the environment (planet)?
Of course the author of that remarkably-uninformative piece of drivel found a way to blame Trump.
Blaming Trump is the libtard’s high five.
This is what zero percent interest rates do. They don’t create more capital; they destroy the capital that’s already in existence.
My local Ford dealer has almost no inventory on the lot. If you want a pickup truck, you will wait a year.
The Chicoms only give a shit about shipping out.
That could be fixed by not shipping them any food.
Buddy, that would be true. I wonder how many stupid canadians understand that?
Huh? Sounds a lot cheaper to make things in N.America? Trump was Right again …
Kenji, Trump was right about many things. He unfortunately did not grasp the level of evil that now controls the minds of the average American.
Exactly, this is not a bug but a feature.
Starve the chicoms like they are attempting to do to the Australians. Cutoff coal, wheat, soya beans, pigs.