"We will see ripple effects continuing into the second half of May," Lars Mikael Jensen, head of Maersk's Global Ocean Network, told The Financial Times.
"We will see ripple effects continuing into the second half of May," Lars Mikael Jensen, head of Maersk's Global Ocean Network, told The Financial Times.
by Tyler Durden
Tuesday, Mar 16, 2021 - 07:17 AM
Shipping container shortages across Asia, vessel traffic jams at ports, higher shipping costs, and soaring input prices - are all part of the very stretched global supply chain in a post-pandemic world that remains in turmoil. Trillions of dollars unleashed by central banks and governments resulted in the overstimulation of the worldwide economy. Continuation of artificial demand stoked by stimulus could exacerbate supply-chain disruptions. I ve never seen anything like this, Lars Mikael Jensen, head of Global Ocean Network at A.P. Moller-Maersk, the world s largest shipping company, told NYTimes last week.
. and, of course, Jensen had never seen anything like this before, due in part to the amount of stimulus unleashed, tens of trillions of dollars around the world, was entirely unprecedented.
Cranes and cargo at the Port of Los Angeles.
Shipping container shortages in Asia, traffic jams at ports, limited availability of dockworkers and truck drivers from Southern California to Singapore, higher shipping prices all are part of a now-stretched supply chain due to the pandemic, according to a recent New York Times report. What is the impact on rail?
“‘I’ve never seen anything like this,’” Lars Mikael Jensen, head of Global Ocean Network at A.P. Moller-Maersk, the world’s largest shipping company, told
The New York Times, which included his quote in the headline of a March 7 feature, “‘I’ve Never Seen Anything Like This’: Chaos Strikes Global Shipping.”
Synopsis
Empty containers are piled up at ports in Australia and New Zealand; containers are scarce at India’s port of Kolkata, forcing makers of electronics parts to truck their wares more than 1,000 miles west to the port of Mumbai, where the supply is better.
iStock
Some experts assume that as vaccinations increase and life returns to normal, Americans will again shift their spending from goods back to experiences reducing the need for containers.
Off the coast of Los Angeles, more than two dozen container ships filled with exercise bikes, electronics and other highly sought imports have been idling for as long as two weeks.