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It adds 7-10 days to a trip that would normally take 30-40 days: https://www.flexport.com/blog/global-ocean-carriers-halt-red-sea-transits-what-to-expect/ https
by semiquaver 3y ago
It adds 7-10 days to a trip that would normally take 30-40 days: https://www.flexport.com/blog/global-ocean-carriers-halt-red-sea-transits-what-to-expect/ https://www.flexport.com/blog/global-ocean-carriers-halt-red...
Air cargo rates are 10-20x ocean, so it’s unlikely an extra week of travel would justify the expense for most cases.
- verelo 3y agoMy point is it’s not cheaper it’s more expensive, at precisely the wrong time. Sure shipping costs might be a small fraction of the costs of goods…but…unless it’s <= 2% that ain’t helping inflation so let’s do something about it. TLDR: it’s more than 2%, the average value of a shipping container is 50k, it costs 3k to mover. This is an issue, let’s resolve it. https://porteconomicsmanagement.org/pemp/contents/part1/maritime-shipping-and-international-trade/value-containerized-trade/#:~:text=About%2070%25%20of%20the%20value,TEU%20or%20%24109%2C000%20per%20FEU.P https://porteconomicsmanagement.org/pemp/contents/part1/mari...
- semiquaver 3y agoFYI: You misread your link, it quotes the average value of a Twenty Foot Equivalent Unit as 55K, so 109K for an FEU which costs 3K to ship. Furthermore, these numbers are wholesale values; a reasonable rule of thumb is to double that for retail prices. That puts the cost of sea freight at about 1.3% of retail using your numbers. Even a doubling would be dwarfed by other factors driving inflation.
- verelo 3y agoOk great feedback, your point seems extremely valid, thank you!