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The LA Times covered this is an article about his tweets, but in a nutshell: the problem is the shipping companies. They wouldn't pick up empty containers comin

The LA Times covered this is an article about his tweets, but in a nutshell: the problem is the shipping companies. They wouldn't pick up empty containers coming back to the ports, so the containers were stuck in the container storage yards outside the ports. Because these storage yards were full, trucking companies couldn't pick up new (full) containers with rigs on location; they had to bring in new rigs. But their aren't enough drivers right now due to COVID and trucking being a generally crappy low-paying job. The first incentive implemented was to start fining the shipping companies for sitting on their (full) containers. However, this is an indirect incentive, intended to motivate the shipping companies to solve the container lifecycle problem in a market-efficient manner. If this incentive doesn't work, the next incentive will more directly address the problem: shipping companies will be fined for empty containers left at the container storage facilities.

s1artibartfast 5y ago
But why don't the shipping companies want to pick up containers? Was this always the case, or what changed?
- colinmhayes 5y ago
  It takes time to load them, and shipping rates from Asia to the US are at an all time high, so they want to hurry back.
  - s1artibartfast 5y ago
    Is it speculation or fact that the ships are heading back empty?
    - deleted 5y ago
      [deleted]
    - Kliment 5y ago
      Not empty, but significantly below what they could carry.
- Kliment 5y ago
  They have super high value cargo sitting at the remote port wanting to be moved. Loading empties takes time and pays little, so they profit optimize by not waiting for them to be loaded, and instead abandon them to clog the port so they can get out a few hours earlier and do their next run faster.
  - jve 5y ago
    ... and get clogged themselves next time they come in?
    - s1artibartfast 5y ago
      It could be a tragedy of the commons effect. If one company alone were to max out on empties, the port would still be clogged.
  - s1artibartfast 5y ago
    Is it profit-maximizing when they have to wait a week to unload when they come back with the same ship or a different ship? If not, you think that they would eventually work it out
potamic 5y ago
Sounds about right. Space is limited and must always be rented. It's surprising that's not already the case.

s1artibartfast 5y ago

But why don't the shipping companies want to pick up containers? Was this always the case, or what changed?

colinmhayes 5y ago
It takes time to load them, and shipping rates from Asia to the US are at an all time high, so they want to hurry back.
- s1artibartfast 5y ago
  Is it speculation or fact that the ships are heading back empty?
  - deleted 5y ago
    [deleted]
  - Kliment 5y ago
    Not empty, but significantly below what they could carry.
Kliment 5y ago
They have super high value cargo sitting at the remote port wanting to be moved. Loading empties takes time and pays little, so they profit optimize by not waiting for them to be loaded, and instead abandon them to clog the port so they can get out a few hours earlier and do their next run faster.
- jve 5y ago
  ... and get clogged themselves next time they come in?
  - s1artibartfast 5y ago
    It could be a tragedy of the commons effect. If one company alone were to max out on empties, the port would still be clogged.
- s1artibartfast 5y ago
  Is it profit-maximizing when they have to wait a week to unload when they come back with the same ship or a different ship? If not, you think that they would eventually work it out

potamic 5y ago

Sounds about right. Space is limited and must always be rented. It's surprising that's not already the case.