4 ms·

There is a lot more substantive detail in one of the linked articles: http://gcaptain.com/canals-feel-ripples-of-container-shipping-crisis-as-vessels-go-the-lon

by jssmith 11y ago

There is a lot more substantive detail in one of the linked articles: http://gcaptain.com/canals-feel-ripples-of-container-shipping-crisis-as-vessels-go-the-long-way-round/ http://gcaptain.com/canals-feel-ripples-of-container-shippin... - Ships are going the long way on "back haul", from Europe to Asia, not the other way around. - Overcapacity is a significant problem for the shipping industry (see, http://www.bloomberg.com/quote/BDIY:IND http://www.bloomberg.com/quote/BDIY:IND over the last year to get a sense). This is a critical factor in making round-about trips economically desirable. - Techniques such as "slow steaming" or "super slow-steaming" keep fuel costs in check.

deleted 11y ago
[deleted]
iofj 11y ago
Because the world economy is currently overproducing (more supply than demand) to prevent prices from falling, these ships (esp. oil tankers) are being "transformed" into storage. Either by taking a longer path, or by outright idling them in front of harbours. Since nobody wants to pare back production (because the last one to reduce production will retain marketshare and revenue and jobs and ...) this is providing a short intermission where prices don't have to drop. This extra capacity that slower shipping provides is filling up fast, it will be full in less than 2-4 months (measured starting in december), and the next leg down for the global economy will begin.