Why There is Now a Global Shipping Shortage #shorts
- Published on: 6/12/2021
- The price of shipping containers increased by an insane 300% in just over a year.
Creating a challenge for the 60% of global trade transported by sea.
Here’s why prices have skyrocketed:
First, a demand surge. Demand for goods typically transported by sea, particularly large bulky ones, experienced a massive rise in interest during lockdown. For everything from laptops to garden furniture.
Second, travel restrictions. Creating significant disruption to port operations. Leading to a logistical domino effect.
Third, a shortage in Asia. With ships stuck halfway around the world, goods are piling up in Asian ports. Leading to low sea traffic whilst demand remains high.
Not to mention the delays caused by the Suez Canal blockage.
To help get things moving, China is reportedly subsidising its fleet to return home.
However, not everyone has the money or trade power to pursue this strategy, which is unlikely to be sustainable long term.
Highlighting a crucial flaw in the just in time global trade system.
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