Synopsis
India was also caught up in the freight-rate issue, but its export lobby group said that the container shortage has eased to some extent on the country’s west coast after the government intervened.
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With business already pummeled by the pandemic, the logistical issues may be too much for some firms.
Soaring freight rates and delivery delays have sparked a global backlash by companies frustrated about the destructive mix of deteriorating service and higher ocean shipping costs.
Trade associations in China have raised antitrust concerns with the government, while similar pressure is simmering in Brussels, where the European Shippers’ Council petitioned the European Commission to address “outrageous price hikes” by cargo carriers. In Washington, the biggest lobbying group for retailers wants authorities to scrutinize the playing field.
Synopsis
The world’s top container line, A.P. Moller-Maersk A/S, this month called the challenges “the most dramatic stress test of the past 75 years.”
Shares of Maersk are flirting with an all-time high and the industry more broadly banked profits of $5.1 billion in the third quarter, a four-fold increase from a year earlier
Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days.
Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics and medical equipment.
By Brendan Murray (Bloomberg) –
Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days.
Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics and medical equipment.
Just 50.1% of container vessels arrived on time in November, down from 80% a year earlier and the lowest level in records dating back to 2011, according to a service reliability index compiled by Copenhagen-based Sea-Intelligence. From Asia to North America, on-time arrivals dropped below 30%, less than half the long-run average globally.
Bottlenecks Wear Down World Economy’s Fleet of Container Ships
Bloomberg 12/22/2020
(Bloomberg)
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Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days.
Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics and medical equipment.
Just 50.1% of container vessels arrived on time in November, down from 80% a year earlier and the lowest level in records dating back to 2011, according to a service reliability index compiled by Copenhagen-based Sea-Intelligence. From Asia to North America, on-time arrivals dropped below 30%, less than half the long-run average globally.
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Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days.
Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics and medical equipment.
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Just 50.1 per cent of container vessels arrived on time in November, down from 80 per cent a year earlier and the lowest level in records dating back to 2011, according to a service reliability index compiled by Copenhagen-based Sea-Intelligence. From Asia to North America, on-time arrivals dropped below 30%, less than half the long-run average globally.