Red Sea Chaos: Freight Rates Soar As Port Congestions Worsen!

Container Rates Spike, AGAIN!
What's Going on With Shipping?
May 30, 2024
In this episode, Sal Mercogliano - a maritime historian at Campbell University (@campbelledu) and former merchant mariner - discusses the impact of Red Sea diversions on global shipping and the spike in freight rates.
#supplychain #containerships #houthi #container #shipping
Support What's Going on With Shipping via:
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Twitter: @mercoglianos
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Marine Traffic
marinetraffic.com
Megamax fleet now forms half of global boxship fleet
container-news.com/megamax-fl...
Alphaliner TOP 100 / 30 May 2024
alphaliner.axsmarine.com/Publ...
Houthis Claim Attacks on Six Ships in Red, Arabian, and Mediterranean Seas
gcaptain.com/houthis-claim-at...
Red Sea rerouting causing Asian port congestion
www.seatrade-maritime.com/con...
War of attrition could prolong Cape diversions
container-news.com/war-of-att...
Sea-Intelligence reports average minimum transit time up 39% on Asia-Med routes
container-news.com/sea-intell...
Singapore congestion reaches 2 million TEUs
container-news.com/singapore-...
Indian shippers and retailers suffer in a wave of supply chain disruption
theloadstar.com/indian-manufa...
Higher consumption in China, US contributed to rate spike
container-news.com/higher-con...
Getting containers in the right place at the right time is now 'impossible'
theloadstar.com/getting-conta...
Shipper fury as spot rates soar - and box lines ignore contracts
theloadstar.com/shipper-fury-...
Drewry's World Container Index - 30 May
www.drewry.co.uk/supply-chain...
Booming May rates mask the looming capacity bomb
container-news.com/booming-ma...
Ellerman City Liner relaunches China-UK service for peak season
theloadstar.com/ellerman-city...
Disruptions continue to drive tanker demand
www.lloydslist.com/LL1149301/...
Five-year-old Suezmax tankers worth more than a newbuilding
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Red Sea Disruptions Are Driving Up Carbon Emissions
www.marinelink.com/news/red-s...

[@phmoffett]

Sal, former SeaLand'er here. It's good to hear your expert commentary on maritime issues. I know of no other reliable source out there now. Thank you.

[@user-vy7iw4lf5o]

I never paid any attention to this stuff. Until now. Completely understandable on how everything impacts us.

[@haameisanaei6481]

Sal does phenomenal work, plus he has a great personality. World news starts from shipping news!

[@DundalkTV]

His depth of knowledge and his presentation are phenomenal as well. I have learned so much important information in a very short amount of time from this very likable fellow!

[@dufrenesguideservice8398]

Sal is a wealth if knowledge with anything seafaring. Thanks for all your dedication and hard work.

[@user-kz8mq8co8i]

Yes, Sal is not just reliable. He has a solid opinion and some of them you don’t hear. He attempts to just give you information and a little bit of other information.

[@natopeacekeeper97]

I loved your Wile E. Coyote comparison! I instantly had a vision of Wile E. dressed in a Houthi Army uniform pulling a missile out of a box marked ACME (cartoonists please take note) No other channel comes close to yours when it comes to all things maritime. Thanks for another great episode and analysis!!!!!

[@kathleankeesler1639]

#NUMEC

[@HarryWHill-GA]

Thanks Sal. If the Laax had actually sunk, it might have prompted the Iranians to relieve the constipation in the Bab-el-Mandeb that is the Houthis. Who knew ex-Laax works on shipping?

[@fubarbrandon1345]

Love the way government says Nothing to See Here...thanks Sal for all the great information.

[@indylovelace]

Sal, as I’m fixing dinner, I’m listening to your latest video and realized how much you’ve become part of my daily routine. I’ve been with you as a Patron since the beginning, yet I haven’t considered raising my initial contribution rate until now. I’ll encourage other Patrons to weigh the value you are receiving from Sal’s efforts and put your contributions in alignment with the value you are receiving. Remember, when we go to work, we are always looking for that next raise. It’s no different for Sal. He’s working a full time teaching job and doing this in the evenings and weekends.

[@KentonGrimes]

Sal, Thank you for the report. One area that I'd like you to consider is that the US demand spike is driven not by a real consumption uptick but instead is driven by the new Section 301 Duty increases that will go into effect in 90 days. This bump in demand is a push to stock up on inventory to mitigate the duty hike this and the equipment strain due to the Red Sea issues created a new black swan event (for freight buyers).

[@rumrunner8260]

Now we understand why High Voltage transformers coming from overseas have a 3 year wait! Supply chain is cooked!

[@jfredq]

America's corporate and political elite have reduced the country to where we no longer have the capacity to make what we use. FDR's one time Arsenal of Democracy is now an empty husk.

[@stevenclever]

This will be the norm for many Industries for quite a while 🤯😵‍💫

[@para1324]

Rumrunner when I read your reply it reminded me several years ago I spoke with three power line guys. They told me that we, (USA) no longer manufacture transformers because of the EPA. They said it had to do with the oil inside them. Is that true? If so that is messed up. Especially if things go south and we cannot get anymore when needed.

[@user-ib4ut6vy2g]

Make in the USA

[@jerryw6577]

@para1324 Production of transformer oil containing PCB compounds was banned in 1979 in the US. However, storage facilities, pumps, etc., may still contain traces of PCB's which contaminate new oil. California has the strictest limits. I suspect that US manufacturing costs are the primary reason we don't make large transformers here.

[@normareed9007]

Thank you so much for this very informative post. Im going to share this link with some of my clients. Handling international cargo, via seafreight, here in South Africa, together with our local woes, has become a nightmare. Just love your channel. ❤😊

[@jockbeems4798]

My company in North Carolina depends on shipping. Because of the mess in the middle east and the drought troubles in the Panama Canal, our backorders and canceled orders are skyrocketing.

[@jm-je4tl]

Have you increased prices on your product yet?

[@jfredq]

After years of gutting American manufacturing and sending the once American factories across the globe, the Houthis end up sending the financial world a lesson.

[@Andy-ir3ve]

As someone who worked directly for ocean carriers and now is a customer of a few, can’t agree more.

[@keeppressing1760]

As a merchant mariner I'm so glad I'm home right now the seas are getting worse

[@stephanieparker1250]

Sigh great, now it’ll cost me a fortune to get my Amazon cat litter.

[@user-vy7iw4lf5o]

Lol. I can’t get it delivered now!

[@frank-t6857]

We use regular sand. Almost free but little bit more dirt on the floor near the litter box. Must replace the sand little bit more frequently. Think alternatives

[@carlthor91]

Costco!

[@ThatOpalGuy]

@@frank-t6857 yeah, let your cats outside and its not a problem. lol

[@stephanieparker1250]

@@carlthor91 yea that’s actually where I get my cat litter now lol it’s on sale often so I have it stock piled!

[@altwoinchester4492]

The longer this goes on the more countries are going to question the ability of the United States to secure or protect the trade through their promised shipping routes.

[@robertkeable1627]

Putting all ones eggs in a basket springs to mind.. Thanks for your hard work.

[@burkevinell]

This is causing me headaches as an export trucker. My customer is using the cheaper carriers which are much harder on trucking. I have a booking now that we can't find out where to pick up equipment and it's all because they went with a cheaper container liner.

[@chiphill4856]

I fished offshore out of Charleston, SC two days ago and there were no less than 10 ships anchored at the sea buoy waiting to come in. Checked today and there's even more.

[@MrTeff999]

I never gave shipping a thought until I discovered your channel. Thanks

[@jamesallen8838]

What’s happening to the Egyptian economy losing so much Suez income?

[@WALTERBROADDUS]

It's amazing this has been going on for months; and people are still obsessed about Egypt?

[@ThatOpalGuy]

good question

[@tomhenry897]

Biden borrowing Chinese money to give to Egypt

[@Graphene_314]

@@WALTERBROADDUS do you want a stabilizing middle eastern country to fall back down and have the resurgence of the muslim brotherhood?

[@WALTERBROADDUS]

@@Graphene_314 are we referring to Egypt? Egypt is in no position to do anything. If your expecting them to send an army to Yemen? that's not happening...

[@davidoldboy5425]

Well done Sal, very succinct, this topic is definitely your expertise.

[@800katie4U]

Thank you Sal

[@captnmark]

If we brought back manufacturing to the US FRIEGHT RATES WOULD HAVE MINIMAL IMPACT. Shamefully the ivy league school grads outsourced our manufacturing overseas. Short sighted and only benefited their bonuses.

[@ArtStoneUS]

Where would you propose that the US manufacturers get their steel? China has more steel-making capacity than the entire rest of the world. Fairly recently, one more of the pig iron smelting operations in Gary Indiana was permanently shut down. The famous River Rouge steel complex south of Detroit was actually owned for a while by a Russian steel company. Cleveland is tearing down the ancient cranes used to unload iron ore (taconite) from Minnesota The federal government is going to shut down the coal mines on government land in Wyoming that are the one big remaining source of low sulfur coal for electric power generation in the Midwest Are we prepared to relax the pollution laws and call off the war on climate change in the United States to revive our industry?

[@adrianhudek9111]

Forwarders have monopoly. Another thing is. If the shipping price rise, importers must increase prices. So goods get more expensive and govertment receives more money from taxes as everything gets taxed and higher the selling price, more taxes for governments

[@pettahify]

This is only true if consumption levels stay at the same level while the prices go up. Hell of an assumption you are making. Also note that the government will also have higher costs, hence a lot of the increased tax income you assume that the government is getting will just be used to finance the higher costs. I do not agree with the assumption you are maning. Increased prices will inevitably lead to decreased consumption.

[@MrCorgh]

You meant to say the Shipping Lines have a monopoly. They got absolutely massive in the COVID years, they now also do, air, land, warehouse, brokerage...

[@aperturemichelle]

better yet if it gets more difficult and manufacturing becomes even easier than the chances of companys bringing back some capacity to the markets thay sell in.

[@breft3416]

I do feel for Bed, Bath and Beyond, but the idea that every item that you need to sell or whatever should be somewhere other than your own warehouse because it funds executive pay and stock support has reached a limit. Business no longer does business- it just chases its tail everytime the wind changes direction.

[@colinsbane]

The Houthis did hit their target. The US Army couldn't even put up a Lego pier that would last more than about five minutes. How many of their ships got stranded during the fun?

[@jakewillits4678]

Our milirary needs to be reprimanded for their treasonous activities of aiding our enemies. Why are they building ports and feeding people who will later be the ones killing us. Thats not what the constitution says to do. It says aiding our enemies is treason

[@johnd2058]

The last time I was this early, the Viet Nam War was profoundly tilting trans-Pacific freight rates, founding "The East Asian Economic Miracle".

[@gaetanomontante5161]

I am educated, but know nothing about shipping. It is refreshing to listen to you explain shipping events that are consequential to smooth operations in trade and economic growth. Than you for your efforts Sal.

[@phildf2447]

Thanks Sal, I wish there were more channels just like yours. This is the most informative channel out there.

[@zakk2936]

4:30 If you compare the size of the hole to the size of the catwalks over the pipes, that's a large hole. If you look at how far off their tracks the large steel cargo doors have been displaced, that's a long way. A lot of energy for just a kinetic impact and some burning fuel...

[@Sil3ntB87]

Thank you for your time and work to keep us informed.

[@christianwitness]

Interesting, as allways. Thanks.

[@beverlyreiner-baillargeon6205]

Fascinating Sal, absolutely fascinating 👍👍

[@gwiyomikim5988]

Very informative report! And btw, was watching a NOVA re-run last night about the EVERGIVEN and literally said “I know that guy” when your face appeared. Fine job on that as well!👍🏼

[@wgowshipping]

Thanks!

[@ArtStoneUS]

Remind me again which country it is that builds most of the large ocean-going ships...

[@robjohnson8660]

Thanks Sal

[@rhodesfunk2996]

Thanks for the info Sal

[@akfinn5308]

Thank You, Sal.

[@Sugarmountaincondo]

Great report as always. So many people still do not grasp exactly how much "stuff" gets moved by ships over the World's Oceans & Sea's and also the barge traffic on major rivers even like the Mississippi or Ohio River's here in the U.S. and about 7-9 in Europe & Asia. Most people just think of trains & tractor trailers because that is what they mostly see in everyday life. I know you're not a documentary type of guy, but I think if you could take the case of the Baltimore Bridge collapse and how it impacted the sugar processing plant and go from start-finish about the crop growing to harvesting and refining. loading onto ships, delivery, reprocessing, transshipment via rail/truck/barge, to warehousing-bagging facilities and transporting again to distribution facilities and show exactly how that 5lb. bag of sugar ends up on the grocery store shelf that everyone buys and why any disruption in the shipping end affects the average consumer. Maybe you could farm this project out to one of your loyal & knowledgeable subscribers to do this (NOT ME!) and then you could just add the voiceover and commentary. You could make it about container ships and use IKEA as the example, but not everyone is shopping for a new bedroom suite that utilizes containers. I don't know, you are smarter than me, but I do think that a Point A-Point B video would be a good learning lesson about just how important Global shipping really is to what the average person picks up off the shelf and could be readily shared on social media platforms.

[@larrypatty8333]

There really needs to be a series on how everything is moved. Ships, barges, trains and trucks. Tim B At Sea hauls products around by barge along the east coast and the gulf of Mexico. The Mississippi is the nexus around river barge traffic in the U.S. The Ohio, the Kanawha, the Cumberland, the Tennessee, the Missouri and other rivers all feed into the Mississippi. A large amount of agricultural products, coal, chemicals and refined petroleum products are shipped out from Baton Rouge and New Orleans around the world. It's amazing how many people think that Fedex and UPS just magically deliver items to their home and businesses.

[@susankerr9521]

Thanks for another very informative video, Sal. Fifteen years ago, who would have thought that the Houthis could impact global trade?

[@GuyBlack-nf5dt]

Very interesting. It is always a pleasure to learn the dynamics of a business you were not aware of

[@NewGoldStandard]

Great content, as always. Thank you!

[@AmazingPhilippines1]

Thanks Sal. Watching from the Philippines.

[@gabrielh7718]

Amazing report and insightful tid-bits especially toward the end of the video!

[@stevenhietikko3269]

Thanks!

[@bradridge5644]

❤ the Gilligan's Island plate

[@joeblow5037]

Mary Ann ftw!!!

[@johncheresna]

I did not recognize you on NOVA last night, at first, then I pictured you in a Hawaiian shit. ;-) Good job as always.

[@davidedickjr]

Massively informative. Outstanding.

[@russellhalleran9080]

Well done! Extremely knowledgeable. Thank you for a Great video.🇺🇸🇺🇸

[@garygatto3410]

Very nice video. Very informative.

[@janicesteiner622]

Can you comment on how the rate hikes on various shipping charges, repairs, port charges, etc have increased the rate of abandonment by ship owners? What's happening to crews being abandoned/stranded without pay is increasing, while the demand for trained mariners is increasing.

[@PecosChico]

Wiley Coyote only goes after one bird and never succeeds.

[@Pompomgrenade]

🤬 That bird is mine👹... soon

[@ThatOpalGuy]

four sentences in and you gave me one of the best laughs of my pre-birth day! Thanks for the early present, SAL!!

[@wgowshipping]

Happy birthday!

[@chrismusix5669]

Happy pre-birthday! 🎂

[@MrTeff999]

The extra shipping costs plus tariffs on Chinese goods is a double whammy.

[@Ailisch007]

Its impacting our international business and I didnt really understand why/whats happening. This video was so much more than what I could have hoped for, really well explain, thank you!

[@esotericcommonsense6366]

Last time I checked they downed 6 global hawks worth in excess of 100 million. So.

[@WALTERBROADDUS]

Pretty effective for cheap labor.

[@pppeeettteeerrr]

I'm paying $6500 on a 40HQ Asia to LA this week. Up 250% from a year ago. 😢

[@jm-je4tl]

By what percent will you increase your prices?

[@pppeeettteeerrr]

@@jm-je4tl Our "retail price" for this commodity needs to increase 3% to break even with the freight cost increase

[@thanhtong2281]

How does this route be affected by what's going on in the Red Sea? It's straight shot across thr Pacific The correct question to ask is how many vessels have been canceled for this route. Then cross check how many vessels are currently docked at LA/LB port Asia to US East Coast also goes thru Panama Canal - avoiding Red Sea/Africa

[@pppeeettteeerrr]

@@thanhtong2281 that stuff is beyond my paygrade lol. But I've found every world event manages to manifest into a price increase. Ukraine. Israel. Yemen. Bridge. So who knows.

[@debbiek7193]

Love the information you share with us. 👍🙏😉

[@georgewyatt2924]

Another excellent video. Campbell needs to give you a raise with the banners always in the background.

[@ChrisRubeo]

Great info, as always, Salvatore!

[@DaveSCameron]

What info? Same news everywhere..

[@ChrisRubeo]

@@DaveSCameron I just love getting it from Sal.

[@jeffr6280]

Hard to believe that someone from our government would provide false information to an industry expert. 🙄

[@seibertmurphy8849]

Thank you for pointing out the opportunities for improved ship design, longer ships, sailing the Africa route.

[@georgewest2096]

Another important show for us all.

[@ljashansen]

Brilliant!!!

[@andrewrivera4029]

Houthis! Houthis! Houthis!

[@stephanieparker1250]

Maybe with the prices going up, there will finally be a stronger combined effort by countries to stop these attacks.

[@frank-t6857]

Or countries in Europe sees it would be cheaper to produce closer to home than in Asia. That has started to happen already.

[@stargazer7644]

Don't count on it.

[@jakemocci3953]

It would be cheaper to just stop supporting Israel

[@WALTERBROADDUS]

​@@frank-t6857Not really. You're never going to see a large-scale shift of consumer products. That's worse than trying to do it in America.

[@WALTERBROADDUS]

We are now at the end of May. The houthis have been at this for over 6 months now. Where do you see political will to do more? The US Air Force alone should have wiped out anything more than a bottle rocket by now. And the so-called escort program is a failure.

[@user-bz2xr3wj5n]

Best show on youtube

[@jameshennighan8193]

AWESOME STUFF As incitefull and informative as ever from Sal. The great thing about WIGOWS is that is is always thoroughly educational. We always learn something we likely never knew before. James Hennighan Yorkshire, England

[@ArtStoneUS]

There was a news story yesterday that the US custom service is shutting down a number of Chinese air freight brokers

[@leonardus6791]

Apparently the only importances are commercial 😢😢😢human life's, that what the Houties value have no importance to the never ending consuming world that only think of its own importance, in their figures, their statistics and...above all, their GOD of Money. Weird world we live in

[@HankHillspimphand]

never thought about congestion. thats going to be a huge issue. when you spent the past 100 years building up a well oiled machine to make its as economic as possibe. its like an engine, a small oil leak is ok for a while but then other thing go wrong, when you put fresh oil back in it might not fix it. the damage is done.

[@mashdown3]

On the bright side it should help local manufacturers.

[@WALTERBROADDUS]

Not really. You don't really see anyone who is going to start making stuff from scratch based on temporary economic situations.

[@jakewillits4678]

When it costs more to ship its like a double edged sword. The companies will make money but not if their ship is hit with a missle. Also its hard for us to export to india and import from india shen you have to take the longest route

[@SmallWonda]

Is quite fascinating - You'd like to think (instead of pretending this isn't happening) that Maritime Powers would get together and enforce law & order on the high seas and bring these pirate's criminal enterprise to an END. But seems rather indicative of the times... Thanks for the focus - least someone has their eye on the ball!

[@kittichaic9591]

Big fan here and extremely thankful for your content. A quick question, will there be any profound spillover to drybulk with these rises in container/tanker?

[@kavemanthewoodbutcher]

Ah, the proper uniform shirt has returned!

[@user-ib4ut6vy2g]

May a good thing because it makes Domestically produced goods more competitive!

[@Stuff572]

Sal, Thank you for the update on the ocean container world. I work in retail, and we are seeing a large increase in China to Seattle container cost for 40HQ. Arriving April $3700, in May $4,200, June $4800 and late June $5,900. July projecting to be greater than $7,000! I'd like more info on the subject if you get any greater insight. Thanks for your info!

[@leaj3799]

Food for thought as always. Had no idea Bed Bath and Beyond a casualty of Covid supply chain issues. I appreciate you opening my eyes to how events around the world have an impact in our daily lives due to shipping disruptions.

[@1MrAngel1]

Wasn't it mainly executive overspending for bonuses and stock buybacks?

[@leaj3799]

I honestly did not follow the closure too closely so I can’t say but wouldn’t be surprised if that played a role and the supply chain issue was something the C-suite did not account for. I’m making an assumption here that a lot of home goods are now produced in China or possibly Turkey when it comes to linens all of which needs to be shipped to meet seasonal expectations. Not discounting mismanagement but supply chain disruption probably brought it to light and certainly didn’t help any.

[@leaj3799]

So I looked it up and the stock buy backs definitely put them on the back foot and not adapting early enough to an e-commerce model also played a role. However I did find this quote in an article that mentions the role of supply chain in their demise: Consumers went to BBB looking for the national brands and just didn’t recognize or trust the private brands. Supply chain issues during the pandemic didn’t help,” she said. “BBB also got rid of their coupons, and using these coupons drove consumer traffic to the store. Without those coupons as a trigger to go shopping, foot traffic dropped.” So multiple factors at play. Sal did talk about ecomerce and de minimus shipments by plane having an impact currently- I can’t remember if that was this video because I don’t always watch them day of posting. BBB obviously just one example of economic impact changes in consumer habits and changes in shipping as a result can have.

[@MrBook123456]

good one

[@volkerengels5298]

Hubris. We all could have seen that with the "Evergiven" - given a week to stay in suez-canal.. :) The shock came half a year later.

[@Kana7782]

Some of our ships are being delayed here in Los Angeles/Long Beach because of what’s happening in the Middle East

[@R3dp055um]

As a resident of Buenos Aires, first I notice how few container ships there are on the east coast of South America, and then at 2:31 when you change to Megamax and there are absolutely none. I suspect if we were looking at bulk carriers there would be more.

[@anthonywilson-qk6bl]

Sal like your thoughts, and that Gilligans Island sign in the background!.

[@nhansen197]

There are so many empty containers in the Pacific Northwest there's a big business in selling the containers to homeowners to be used for storage sheds. Some people are even building homes out of them.

[@mackellyman5642]

Usually rusted from Seawater...

[@Mohawk21-oi1ni]

I own a container from BALTIMORE! I did the metal work, rattle can REBUILT, and modded out with wheels and a Tommy gate for above ground storage and mobility.....

[@Mohawk21-oi1ni]

All done for practicing for building my new home on LAND

[@CookieEspresso]

I always wonder how life is like for workers on these giant tankers. And how life is like when they are stuck on there for days/weeks with delays. Must be a really tough job.

[@bcluett1697]

Imagine the engines on a 30K TEU ship. It's so crazy to think one day they just might link ships like trains with "locomotive" tugs. If the weather gets any more saucy they might need to make them submarines.

[@douglasengle2704]

4:06 These are dead on target hits! The missile likely is not meant to work below the water line so at the water line is the most damage it can do. The target on the hatch shows a near half circle of deformation from a dead on center hit between the two hatches. The fact the warheads didn't work may not be the fault of the operators. Maybe they didn't have warheads to save weight and gain range. The damage done didn't sink the ship, but it want be used for shipping for possibly a very long time. The world would benefit from higher level of CO2 for invigorating C3 plants greening the planet. Earth's greenhouse effect is always in saturation from the strong greenhouse gas water vapor absorbing all the greenhouse radiant energy from the earth within 20 meters of the surface and can't have its overall effect changed by noncondensing greenhouse gases such as CO2 or methane. This is high school level science. The UN IPCC makes it clear to protect from fraud prosecution that is took its greenhouse gas samples at 20,000 meters altitude where it is high school knowledge (well educated persons) there is no active greenhouse gas activity.

[@allangibson8494]

Except you hit a limit where the WATER available limits plant growth not CO2. High CO2 with low water results in slow growth or dead plants.

[@mariespencer8668]

Nice shirt!

[@jackkohler1392]

Terrific job, Sal! The effects will start hitting by year end. This does not bode well for inflation.

[@markseaman4750]

One would think that Egypt is not happy with the loss of revenue from Suez tolls. At what point will they have had enough and do something about it?

[@WALTERBROADDUS]

For 7 months people have been barking about Egypt. Egypt has no political will. Nor has the military capability of doing anything about it any more than we do.

[@tomhenry897]

Can’t Houthis say all their targets are Jewish

[@c0d3warrior]

With shrinking cosumer demand thanks to rampant inflation, over-capacity might be an even bigger problem in the future than presented here. Skyrocketing costs for shipping don't exactly help in that regard either...

[@Shipspotting_Vietnam]

Our containers take 15 days longer than normal because the ship must go to the longer way! It is not free, officer!!!

[@jakewillits4678]

Thats why the ships basically have semi mansions built onto the back of them when your not just puttering around africa for weeks you might be waiting in line somewhere or your unloading for ages and loading back up. They really actually live on them things it really probably starts to feel like a home in an odd way.

[@arunevaiciulyte7805]

Container rates spike and I'm a truck driver for 25 years and the rates are extremely low we can barely make it so where us the shipping spike

[@samnater]

Yo man that’s logistics. For ships. That’s shipgistics.

[@tianyi05]

Looking at the components of the Drewy Index, transpacific rates (non mega container ships) have risen juat as fast as the Asia-Europe rates and all the increase is in the rates leaving China, rates going to China are flat. How much of this is to to short term demand as importers (US and Europe) of Chinese goods ramp up buying to build inventories in light of the rising trade tensions. Once inventories are build up as high as people are willing to carry short term demand will drop off. The Drewy index is spot and short term contracts, not annual contract rates. No one publishes those. Only 5 maybe 10% of goods are shipped on spot rates.

[@lyleparadise2764]

History always has a way of repeating itself. If this shipping fiasco continues ( and I don't see it ending anytime soon ) , then I see a return of the European Imperialisms of centuries past coming back to fruition. One of the main reasons Europe had so many empires and colonization was to protect the ability for them to get goods from overseas for their growing economies in a safe and efficient manner. This time, of course , it will also involve the USA, China, India and all other nations that will be effected economically if this isn't resolved. Eventually , I'm afraid , this will have to happen again.............unless we like bare shelves in our stores. It's going to be an interesting next few years for sure.

[@kskssxoxskskss2189]

Sal, I wish everyone griping about rising prices would take an open-minded look at your videos on the international supply chain. We all, left and right, have our favorite political villains, and there may or may not be truth in those theories and witch-hunts. But you're doing old-school economics -- the kjnd my dear father insisted his children learn regardless of politics -- and you are shining the light he cast for so long. Thanks, and good wishes.

[@wgowshipping]

Thanks

[@annagiesking5828]

I'd be interested to hear your take on if the US should invest in deepining ports for these larger ships, and if so which ones might be a good canidates? Love learning about a whole new corner of the world from an expert, Thanka for what you do!

[@jakewillits4678]

Yes we should have deep ports. Thise ships would be coming over here if they could port. Clearly we only need like a couple on each coast and maybe 1 in texas idk. Im no expert thats just my opinion. We have a lot of ports in usa but the bigger the ship the harser it gets to port them anywhere for that matter. Costs a lot to keep dredging out too and making sure youre not compromising structures integrity around it. So it wouldnt be a bad idea to be more strategic with the bigger ones.

[@MarkRose1337]

I could see them doing 25 containers wide as there are many cranes that size out there already. A ship 500 or 600 m long would be a sight to behold. Are there any docks big enough to build one?

[@wgowshipping]

That would be the limitation.

[@geoffmccoll4640]

Sorting out how to build a relief aid pier in Gaza, any suggestions?

[@PaulRoberts61877]

why is it that long beach, Tacoma, other west coast ports accommodate MegaMax?

[@Hybris51129]

I wonder how this will effect trucking load rates? My father is a owner-operator and the rates that are being charged per a mile for most loads is well below the cost of operating. Also if the shippers do invest in longer container ships just how large can they realistically get before you start seeing structural issues?