Shipping news

[weijian]

It's all about the incentives. The cure for high prices are high prices. I wouldn't blame anyone for making hay while the sun shines. High prices are really not their problem to solve.

I’m A Twenty Year Truck Driver, I Will Tell You Why America’s “Shipping Crisis” Will Not End

What is going to compel the shippers and carriers to invest in the needed infrastructure? The owners of these companies can theoretically not change anything and their business will still be at full capacity because of the backlog of containers. The backlog of containers doesn’t hurt them. It hurts anyone paying shipping costs — that is, manufacturers selling products and consumers buying products. But it doesn’t hurt the owners of the transportation business — in fact the laws of supply and demand mean that they are actually going to make more money through higher rates, without changing a thing. They don’t have to improve or add infrastructure (because it’s costly), and they don’t have to pay their workers more (warehouse workers, crane operators, truckers)

https://medium.com/@ryan79z28/im-a-twent...e0ebac6a91

[Behappyalways]

China is imposing quarantines of up to 7 weeks for cargo ship crew, and it’s bad news for the supply chain
https://www.hellenicshippingnews.com/chi...ply-chain/


How California "Solved" Its Record Ship Pileup: It Moved Them Out Of Sight, Over The Horizon
https://www.zerohedge.com/economics/how-...er-horizon

[Behappyalways]

101 ships spread across 1,000 miles waiting for berth space at LA and Long Beach
https://splash247.com/101-ships-spread-a...ong-beach/


About that rate relief … ocean shipping costs are rising again
https://www.hellenicshippingnews.com/abo...ing-again/

[Behappyalways]

SCFI連飆六周！節慶出貨高峰"海空運"全爆單 台驊顏益財點出2大變數｜非凡財經新聞｜20211217
https://m.youtube.com/watch?v=FbBiNlLnylw&t=11s


Heavy rain and flash floods disrupt Port Klang’s operations
https://container-news.com/heavy-rain-an...perations/


Rates rise globally as restocking boosts demand
https://www.hellenicshippingnews.com/rat...ts-demand/

[Behappyalways]

淡季更勝旺季?貨櫃三雄Q4營收獲利有望打敗Q3 法人:今年賺的比前10年總和還多｜非凡財經新聞｜20211225
https://m.youtube.com/watch?v=QmlcY7NLiD8

[Behappyalways]

Maersk foresees severe space shortage ahead of Chinese New Year
https://container-news.com/maersk-forese...-new-year/

[Behappyalways]

SCFI指數2年漲近4倍飆破5千點 美西線周漲3.18%.美東線2%｜非凡財經新聞｜20220101
https://m.youtube.com/watch?v=-qY3ddoGjFc

[Behappyalways]

And locking shippers into long-term contracts at significantly increased rates would ensure “sustained profits and higher returns” for carriers.

Liner operators can boost income while smaller carriers reap bigger profits
https://theloadstar.com/liner-operators-...r-profits/

[Behappyalways]

“The only certainty in the container shipping market today is that annual contract freight rates this year will be going up by more than 60% on the major routes, when compared with 2021 contract rates,” Damas predicts. Taking into account both spot rates and contract freight rates, average container shipping rates will see a further annual increase in 2022: the latest Drewry Container Forecaster expects an increase of 16% in 2022, following the doubling of rates in 2021.


“Even with a shift in consumer spending, low retail inventory levels will mean strong demand will keep volumes elevated between Chinese New Year and peak season 2022,” Levine predicts.

Liner shipping in 2022
https://splash247.com/liner-shipping-in-2022/

#BareShelvesBiden Trends As Alarming Number Of People Report Empty Stores
https://www.zerohedge.com/political/bare...ty-shelves

[weijian]

In a way, the existing players have no incentive to solve the problems. Logistics providers are earning big bucks. Regulators' KPIs are not tied to efficiency gains. US is the biggest consumer of goods and port operators know that your goods have to come in through them, no matter what (they can't ship to an efficient Dutch port for example).

Interview: Ryan Petersen, founder and CEO of Flexport

The supply chain crunch was started by increasing demand for goods, as consumers stopped spending on services. Americans in particular had more money in their pockets because they weren’t going on trips, spending at restaurants and bars, or attending concerts. Instead as city after city started enforcing lockdowns and restrictions, people started spending a lot more goods and not services. You’ve got to get your dopamine somewhere. So what we saw was an unprecedented increase in imports from China—as much as 20% more containers entering the United States than were leaving our ports since the start of the pandemic. It turns out, our infrastructure is just not made to scale this fast, and by infrastructure what we mean is the entire ecosystem: The number of container ships in the world, the number of containers available, the throughput of our ports, the availability of trucks and truck drivers, the availability of chassis (the trailers that haul containers around), the entire system is overwhelmed and clogged. We simply don't have enough of these essential supply chain elements, or resilient systems that are agile enough to shift the supply of these assets to where they're needed.

While the pandemic drove this shift in demand from services to goods, it also changed where consumers were buying goods (increasingly online), the types of goods they were buying, and where those goods were flowing to and from. One thing to note is that e-commerce logistics networks are fundamentally different in their geographical and physical space than that of traditional retail. They're more complicated because you are edge caching your inventory to be closest to your users instead of positioning everything in a distribution center in a single hub. You now have to position your warehouses all over the United States, making it exponentially more complicated. So the more people bought things online, the more these systems were overloaded.

https://noahpinion.substack.com/p/interv...f-flexport