ship operating costs

The supply chain crisis… is really a port congestion crisis

Graphic: a montage of images representing the concept of logistics; Credit: Gerd Altmann via Pixabay

The ocean shipping industry is aware that the current market is, for a lot of importers and exporters, profoundly upsetting.  It’s no secret that there are a lot of problems right now. There are three main reasons why:

  • ship operating costs have gone through the roof
  • demand has surged
  • port congestion has crushed supply

Ship operating costs: up

The cost of marine fuel has increased by about three...

https://www.shippingaustralia.com.au/supply-chain-crisis-is-a-port-congestion-crisis/

Ship operating costs up 773%, demand up, supply up, congestion up, shipper propaganda up

Pictured: rows and columns of containers in a stack. Photo: OlafPictures via Pixabay

Current market conditions are caused by a huge surge in the demand for container transport. On the supply side, box port congestion and poor container port performance are  reducing the supply of shipping. The costs to operate a ship are massively escalating.

COVID has induced a demand-squeeze. In such a squeeze, demand increases massively and rapidly while supply (which involves the physical building of, and...

https://www.shippingaustralia.com.au/ship-operating-costs-up-773-demand-up-supply-up-congestion-up-shipper-propaganda-up/