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I'm sure dockworkers are earning plenty of overtime. But building more containers and converting cruise ships into container ships is time-consuming and extreme
by nonameiguess 5y ago
I'm sure dockworkers are earning plenty of overtime. But building more containers and converting cruise ships into container ships is time-consuming and extremely expensive, and the costs don't go away when you're done. You may or may not be able to offload them when the shock goes away and you don't want to permanently incur an operational cost increase in maintenance and storage to take advantage of a temporary price bump.
And for all we know, shipping companies are taking measures like this, but making more container ships doesn't just happen. I don't know nearly enough about ships to know if it's even possible to convert a cruise ship to a container ship, but at bare minimum, you'd need to remove all of the above-deck amenities and cabin space, and maybe that requires less time than building a ship from scratch, but it still requires time. It requires hiring people who live near your dock to do it. It requires getting trucks to haul off all the waste you're generating. It requires metal recycling or waste facilities to have the capacity. It requires space at the dock to park a ship while you disassemble it. How much time does it take to get all that in place? How much expense? At least in the short run (but short possibly meaning a few years here), this would cause more shortages, as existing capital, space, and labor was repurposed to building new capacity rather than keeping the existing pipes moving.