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If it becomes that lucrative to ship containers new entrants will join the market at better rates
by steve_gh 2y ago
If it becomes that lucrative to ship containers new entrants will join the market at better rates
- advisedwang 2y agoIt's not that simple. For one thing, lead times are long and costs are high so there is a huge risk that your capital will be wasted if costs come down before projects are complete. Secondly not all the bottlenecks can simply have a new entrant. For example, the article cites panama canal constraints as a factor. Launching a competitor to the panama canal requires more than just time and money, it requires political and geographic opportunities.
- retzkek 2y ago> Launching a competitor to the panama canal requires more than just time and money, it requires political and geographic opportunities. Mexico is well on the way with their competitor: https://en.wikipedia.org/wiki/Interoceanic_Corridor_of_the_Isthmus_of_Tehuantepec https://en.wikipedia.org/wiki/Interoceanic_Corridor_of_the_I...
- willyt 2y agoThe new entrants just need to order a few 150,000 tonne container ships from Korea, these should be ready in a few years then they'll be good to go, as long as the incumbents don't sneakily cut prices just as their new ships are ready, they should be golden...
- LeChuck 2y agoYou are being downvoted but you're right. New entrants are joining the market. Problem is, these are usually smaller local players who don't have enough capacity to have any influence on rates. https://theloadstar.com/ellerman-city-liner-relaunches-china-uk-service-for-peak-season/ https://theloadstar.com/ellerman-city-liner-relaunches-china...