SHPP - Is The Container Shipping System Running Out Of Capacity?
2024-06-24 01:20:00 ET
Summary
- The return of vessel queues outside Singapore, and many other ports for the first time since Covid, points to trouble in the system that transports 45% of global trade by value.
- At least 6-7% vessel capacity was effectively taken off the market early this year due to the longer voyages ships must take around the Cape of Good Hope to avoid attacks in the Red Sea.
- Lean inventory, or "just in time" strategies which depend on reliable and consistent logistics connections, will always be vulnerable.
The return of vessel queues outside Singapore, and many other ports for the first time since Covid, points to trouble in the system that transports 45% of global trade by value....
Is The Container Shipping System Running Out Of Capacity?