Maersk, the owner of the seas: “The end of the container crisis is not in sight”

The largest shipping company in the world, the Danish Maersk, has presented spectacular results thanks to the increase in prices in the rental of its containers caused by the bottlenecks that world trade is suffering. The company has posted its best quarter in profit since 2014 and the most profitable in its history. The owner of the oceans does not see the end of the collapse in the ports and fears that it will get worse as many companies try to increase their inventories at all costs.

The owner of the world’s trade sea lanes is not getting a day’s respite as he grapples with the biggest transportation crisis in decades, caused by collapsing ports and supply problems, experienced by all industries.

The results presented by the Danish company leave several data to gauge the tension experienced by global supply chains, in general, and maritime routes in particular. In the third trimester, only 0.6% of freighters of the total world fleet remained inactive, an unpublished data. And the price of freight, as measured by the China Composite Freight Index (CCFI), which takes into account rates from Chinese ports, increased 229% in the third quarter compared to last year due to high demand.

The largest shipping company in the world by number of containers has put on the table the inability of the maritime industry to handle increased cargo volume that has been unleashed after the pandemic.

In its quarterly report, it highlights that the number of containers in circulation has barely grown by 7%, while it has had to face their low availability, long waiting times to enter the ports and bottlenecks in the transport of merchandise by land.

The ports are not working as well as they should, so we cannot unload containers as fast as we would like

“The ports are not working as well as they should, so we cannot unload containers as fast as we would like. It is difficult to see exactly when the situation will improve. Our customers are dealing with very high customer demand and also have an inventory. very low, “explained Maersk CEO Soren Skou.

The result of this chaos has been an increase in freight prices for its customers. The shipping company’s rates have gone from $ 1,909 for a standard container to $ 3,561. The worst thing is that the company does not see an end to the current crisis. The situation is getting worse in the ports of Los Angeles and Long Beach in the US, the manager pointed out. Demand is piling up on infrastructure as manufacturers and retailers increase orders to fight stock shortages.

The shipping company is the first-hand testimony of the supply crisis and its evolution. More and more sectors are falling into a spiral of rising transportation costs, rising supplier prices and a lack of stocks of key products. The strong recovery of the western economies has suddenly triggered the demand for world trade. The stoppages of Asian ports due to covid outbreaks and the rise in the price of raw materials is complicating the situation.

The shipping company’s rates have gone from $ 1,909 to $ 3,561 for a standard container

“What we really need in Long Beach are more stevedores and, most importantly, more truckers,” the executive denounces the lack of workforce. Outside the port, the vessels to unload have gone from 60 to 80 in just one month. Skou, calculates in statements to Bloomberg, which currently has 300 ships waiting to dock. “The problem is not really the lack of capacity of the ships, it is that the capacity of the ship is running out when waiting outside the ports,” he explained.

The complicated situation of the ports contrasts with the results presented by the company. Maersk multiplied operating profit by five to $ 5.9 billion, the best result since 2014, and posted record numbers in its 117-year history in revenue ($ 16.6 billion, up 67%) and Ebitda ($ 6.9 billion, 200% more).