In 2021, the shipping industry is worse than the Yakuza
Shipping circumstances
This year, things will look very different from here.
Since the beginning of the year, delays to container ships have been noticeable around the world.
The cause is the China-US route. Apparently, American consumer spending is so strong that it's causing cargo loads mainly in Los Angeles.
In the United States, subsidies and unemployment insurance are so generous that the motivation to work is plummeting and many people are becoming lazy.
It seems that the labor force participation rate is falling, but (some) Americans are not working but are going into debt to consume, buy stocks, and even buy houses, so it's causing quite an uproar.
Normally there are about five ships waiting off the coast of Portland, but now there are five to ten times that number.
Containers travel all over the world, so if they are delayed in one place, it will cause a domino effect and delays for all of them. This is no exception even for the ultra-local route of Akita → Busan → Seongju .
With an overwhelming shortage of containers, it's a seller's market, so shipping companies are being aggressive and are skyrocketing freight rates.
For example, on long-distance routes such as China-South Africa, a 500% increase in fares is an unbelievable figure.
This is about dry containers, which reach temperatures of around 70°C near the equator.
Reefer containers, which are essential for food exports, are normally three times more expensive than dry containers, so if they cost five times as much, the freight rates become unbearable.
If the price is not passed on, the company will eventually go bankrupt.
So, the ones who suffer the most are the end consumers who have to pay the price... but shipping companies remain extremely bullish in these market conditions, so it's just not fair.
Well, global inflation is a given. In any case, there is demand but goods are not moving, so supply is tight.
...I don't know who is benefiting from this, but this situation has been going on for almost a year.
This year, things will look very different from here.
Since the beginning of the year, delays to container ships have been noticeable around the world.
The cause is the China-US route. Apparently, American consumer spending is so strong that it's causing cargo loads mainly in Los Angeles.
In the United States, subsidies and unemployment insurance are so generous that the motivation to work is plummeting and many people are becoming lazy.
It seems that the labor force participation rate is falling, but (some) Americans are not working but are going into debt to consume, buy stocks, and even buy houses, so it's causing quite an uproar.
Normally there are about five ships waiting off the coast of Portland, but now there are five to ten times that number.
Containers travel all over the world, so if they are delayed in one place, it will cause a domino effect and delays for all of them. This is no exception even for the ultra-local route of Akita → Busan → Seongju .
With an overwhelming shortage of containers, it's a seller's market, so shipping companies are being aggressive and are skyrocketing freight rates.
For example, on long-distance routes such as China-South Africa, a 500% increase in fares is an unbelievable figure.
This is about dry containers, which reach temperatures of around 70°C near the equator.
Reefer containers, which are essential for food exports, are normally three times more expensive than dry containers, so if they cost five times as much, the freight rates become unbearable.
If the price is not passed on, the company will eventually go bankrupt.
So, the ones who suffer the most are the end consumers who have to pay the price... but shipping companies remain extremely bullish in these market conditions, so it's just not fair.
Well, global inflation is a given. In any case, there is demand but goods are not moving, so supply is tight.
...I don't know who is benefiting from this, but this situation has been going on for almost a year.