And it hasn’t stopped yet. It’s Now the Gamblers Betting Circle! Container Ship Congestion at Ports is turning into PURE PROFITABILITY To Container Shipping Companies. And hey, don’t worry. It’s only going to bite us, all of us, right dead in our ASS.
This extreme profitability is built on an incredible bull run of pricing, where tight space, strong demand — especially on the trans-Pacific — and port congestion in Asia and at destination ports in the US and Europe has driven spot rates to new highs almost every week. Contract rates have followed the spot market and are far above pre-pandemic levels.
“Stronger-than-expected spot rate movement in the third quarter and a longer supply chain recovery timeline are behind our reason to upgrade the outlook for average global freight rates — spot and contract — for 2021,”
Maersk, the world’s largest container shipper, has seen record profits. The Danish shipping firm whose customers include Walmart and Nike announced May 2021 first-quarter revenue of $12.4 billion, a 30% increase from a year earlier. Maersk has a fleet of over 700 ships and handles one in every five containers shipped by sea. The company also owns terminals around the world and has a growing land-based logistics business. On average a Maersk container ship calls on a port somewhere around the globe every six minutes.
Data from Xeneta shows spot rates of 32 days or less on the China-North Europe trade are currently at $7,696 per TEU, up 950 percent compared with 2019 levels, and contract rates of 90 days and over are more than double those of 2019 at $2,364 per TEU. On the trans-Pacific, China-US West Coast spot rates are up 552 percent versus 2019 at $7,203 per FEU, despite a slight dip during China’
‘s Golden Week from Oct. 1-Oct. 7. Contract rates of about $2,260 per FEU are up 125 percent on 2019 levels.
I’m sorry, but this is going to have an unbelievable COST added to the Prices of so many Goods that the Consumer needs and buys. Are you ready for a 100% increase on a Product you use weekly? Daily?
Folks, this is some of the saddest NEWS I’ve ever written for the World Consumer. Not just Europe or the United States. But for Japan, Germany, South Korea, China, Russia, and the Rest of the World.
A 125% Increase in Cost might not even cover what the Cost Increase may be by 2023.
It’s exposed deep flaws in America’s supply chain – a web of problems that have saddled the country with product shortages, backlogs and higher prices. Nowhere are the problems more evident than on the shipping routes from Asia. The volume of goods glutting West Coast ports has shattered records, swamping the ports. There’s no shortage of finger pointing at who’s to blame as the containers pile up on the docks.
When I watched 60-Minutes Tonight as it laid out all the Issues that are facing the Container Ship LOGJAM, several things jumped out at me.
- A Truck Driver with his EMPTY CONTAINER going to get a full Container is turned AWAY because the Container he has ISN’T THE RIGHT COLOR!
- The Entire Shipping System succumbing to an ANTIQUATED SYSTEM using ANTIQUATED PROGRAMMING! I’m talking still using DOS!
- This is NOT A TRUMP or BIDEN ITEM! Neither President caused it.
- The PANDEMIC has OPENLY shown the World’s Weaknesses on its Container Shipping Industry.
- Warehouses not OPEN 24 Hours when the Docks are. A Massive Number of Containers are now sitting on the Docks on the Western Coast. Just sitting and UNLOADED.
- CALL in the Military to HELP!
- Find the places to put the stuff in these CONTAINERS and Get the Empties back at SEA.
So, sure, I saw the reasons or explanations unraveled. But we’lL never be TOLD all of them. And which one is the GREATEST? Container Ship Profits are going to have the biggest IMPACTS I see yet to come. I see many Businesses shutting up their Doors. Their Products might be the ones Consumers won’t be Ready to spend more money just to have.
Cars will be SOARING in Costs. SOARING! Will the Consumer be Buying a Car with a 125% INCREASE in Sales Price?
I contacted others and they say we haven’t gotten Close to the bottom of this Mess yet. It’s going to get MESSY MESSY MESSY before it gets better.
Where da HecK Is CONGRESS? Why the Heck isn’t this being investigated? Oh, I forgot. The 45th can’t be bothered. So, he’s still having his Minions working on Election Audits and The BIG LIE! So, they can’t be bothered.
Oh, and the January 6 Investigation can’t be out on PAUSE for a couple of weeks to RE-FOCUS ON THE CONTAINER SHIP and BEING UNLOADED Delimma.