Disruption Report #58 Ocean Freight Company Revenues Are Up a Ridiculo…
Ocean Freigh
br>T COMPANY REVENUES INCREASED IN 2021 MORE THAN THE LAST 20 YEARS PUT TOGETHER
br>A headline says it all; "Ocean freight carriers made more money in 2021 than in past 20 years combined.’ The article, written by Robert Dalheim, and published in FurnitureToday, cited some
br>eye-opening statistics.
br>Inventory carrying costs increased 25.9% last year.
br>Spending on ocean freight increased by 23.6%.
br>Parcel delivery was up 15.6%.
br>3,113 CONTAINERS LOST AT SE
br>A
br>OVER THE LAST TWO YEARS
br>It has seemed like a lot of containers have been toppling overboard and sinking to the bottom of the ocean over the last two years. As it turns out, it wasn’t our imagination.
br>3,113 containers went overboard, almost five times more thanr the prior Three years.
br>br>
We can blame much of it on the weather. I wonder, however, if the new high-capacity ships are part of the problem
br>. For example, Chinese shipyards just launched the world’s largest container ship, the "Ever Alot." How big is it?
br>Its more than four football fields long (1312 feet) and can carry more than 20,000 twenty-foot containers.
br>The largest container ships stack containers 21 units tall. If the container is 9.5 feet high, the stack is almost 200 feet tall.
br>That is hard even to visualize. It makes you wonder how stable those stacks Here are 5 reasons to love remote control cars on rough seas, and how much they contribute to lost inventories.
br>Just In Time Manufacturing Is Giving Way to Big Inventories
br>For years, the world’s supply chain has underpinned the Just In Time philosophy of production.
br>The idea was to lean on quick transport to avoid having to carry inventory.
br>That idea is beginning to seem antiquated
br>as the world’s manufacturers and shippers deal with ports that don’t seem to get unclogged.
br>Covid and the war in Ukraine have forced companies to stock up on goods to avoid having their products undergo long delays and outsized surcharges.
br>What are companies doing instead of following Just In Time practices? They are
br>building or leasing more warehouses and moving from single to multiple factory sourcing.
br>