Every company engaged in the international trading business has recently come across a problem of increasing freight costs and limited available space on vessels.
Recent tariffs and the ever-increasing demand for rapid shipping have pushed this number higher. A drop in consumer demand will likely lower the number. However, the focus should remain on the diversity, resiliency, price and efficiency of the supply chain.
While the pandemic has put pressure on consumption in the West, there are other longer-term threats to long-distance shipping. The most obvious is the trade tensions between the US and China.
This debacle has highlighted one of the major weaknesses of our globalized economy. Will this change our opinion about the way the shipping industry currently operates itself?