As the ports and the entire transport logistics chain experience traffic jams, the goods take time to reach their destination. Thus, companies are forced to pay more to transport their products and consumers also end up paying more for them.
According to Heaney, the maritime transport of cargo is considered as “a low-margin industry that attracts few investors” and recalled that the five largest shipping companies in the world concentrate two thirds of the market, and that the 10 largest companies control 85% of global maritime transport. “I would say that the market is moderately concentrated and that it is a fairly competitive sector “, says the expert.
Maersk, is making more money than ever
The largest shipping company in the world, the Danish Maersk, you are making more money than ever. Thanks to the rise in the rental price of its containers, the firm recorded in the third quarter of the year the most profitable period in its 117-year history. Earnings, before deducting taxes and interest, reached $ 5.9 billion, while revenues reached $ 16.6 billion.
As there is excess demand from consumers and a lack of supply to move products, the prices of maritime transport have skyrocketed. On some of the busiest shipping routes between Asia and the United States, Europe or Latin America, rates have risen by more than 500%.
“The ports are not working as well as they should, so we cannot unload containers as fast as we would like,” said Soren Skou, CEO of Maersk, in early November.