Container lines, cargo plane operators, online retailers with transportation networks, and integrators such as FedEx, UPS, and DHL are scaling up capacity and reaping rewards as the holiday season puts the crunch on the global supply chain.A fundamental shift in consumption patterns this year has ramped up the pressure on the US's logistics networks as buyers spend on physical goods instead of experiences.
"As the economy has recovered, we've seen imports spike," Jonathan Gold, the National Retail Federation's head of supply chain and customs policy, said. "We've also seen an explosion of e-commerce over the past couple of months, and that has put a lot of pressure on domestic supply chains.""We're not going to sporting events, we're not going on vacation," Brian Bourke, the chief growth officer of Seko Logistics, told Business Insider.
"We've had two people threaten to sue us and one threaten to come to the office and beat up staff members over delays securing truck chassis in Los Angeles," a California freight forwarder told Business Insider, speaking anonymously to avoid disparaging his customers. The shipping analyst Drewry said it expected the container-shipping sector to post profits this year of $11 billion, a performance that would be the industry's most lucrative since 2010. Maersk, the largest container line, posted an 82% year-over-year increase in third-quarter net income last week. Hapag-Lloyd, the fifth-largest container line, saw its third-quarter profits leap 68% compared to 2019, while ONE and Cosco Shipping Lines saw their third-quarter net profits rise 30% and 51%.
Monkmeyer said capacity was available to those willing to pay premiums. "The challenge is that there are companies out there like Amazon just buying at two to three times [the going] rate."
Pennyd Can't argue with this for 2 reasons. 1 - Many companies (mine included) ship product in the belly of Commercial Flights, which are flying at 50% right now, they need a shipping method. 2 - I worked for DHL, GREAT company! 😀
nice