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> Prediction: By mid-2022 there'll be a glut of containers. All the publicity around the present shortage will induce manufacturers to ramp up capacity. From s
by alsetmusic 6y ago
> Prediction: By mid-2022 there'll be a glut of containers. All the publicity around the present shortage will induce manufacturers to ramp up capacity.
From someone else quoting TFA:
>> Anticipating major industry collapse, the Carrier Alliances showed remarkable discipline in aligning supply with demand as early as February; removing trade capacity from the seas by halting vessels and shipments. By doing so, the erosion of ocean rates was kept to a minimum. Basing their reaction on potential worst case scenarios, shipping carriers artificially created under-capacity. This made available space come at a premium and therefore significantly raised the cost of container shipping, stabilizing revenues for carriers.
It seems the constraint is artificial.
edit: moved >