shipping have a long shared history. The word quarantine is derived from the 14th-century Venetian practice of isolating ships at anchor for 40 days if plague was suspected on board. The latest ailment is a global pandemic that has killed at least 1m people and put the world economy, and global commerce, full steam reverse. This might have been expected to becalm an industry which carries 90% of traded goods—11.9bn tonnes last year, or 1.
The industry has been able to take advantage of the swifter-than-expected recovery thanks to big underlying changes in its structure over the past decade, towards greater concentration. Container shipping, like tankers and dry bulk, seems finally to have learned a lesson from the debilitating overcapacity created as companies battled for market share.
Increased co-ordination has allowed the companies to respond to slowing trade. “Blank sailings”, industry jargon for cancelled voyages, came thick and fast. In May a record-breaking 12% of the global container fleet was idled, according to one estimate. Even as capacity has been reinstated—the share of the fleet that is idle has fallen to around 3%—freight rates have rocketed to cope with an unexpectedly vigorous recovery.
The thin order book —now equal to just 7% of the fleet—is not entirely down to newfound sobriety. Stricter environmental rules play a part, says Mark Jackson of the Baltic Exchange, a data provider. The International Maritime Organisation, the’s shipping agency, wants to halve the industry’s carbon emissions by 2050, relative to 2008.
Diversification of supply chain is a burning necessity that covid has exposed
It's not wise idea to move production out of China because the virus is under control and production is fully recovered. Most American and Japanese companies do not want to move production out of China because they will lose profit.
tushar_JAtt
Complete lie. Many of the shipping routes already exist. No reconfiguration needed.
senatemajldr + Secretary of Transportation SecElaineChao on a roll, so fired the investigator.
EndSARS EndSARS EndSARS EndSARS EndSARS EndSARS EndSARS EndSARS
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