Today the Globe & Mail (Toronto) is reporting some really grim container traffic figures for North American West Coast ports:
Per Cent Change, February 2008 through February 2009:
Vancouver -21.0%
Seattle -36.8%
Los Angeles -32.6%
Long Beach -40.0%
Its all to do with the downturn in demand for consumer goods from China where most of the container ships come from. The U.S. and Canadian west coast ports are hurting as described because the container lines built ahead of actual demand and have been caught out. Over tonnaging is also part of the problem. Seaports that have put all their eggs in the container "basket" are also suffering because they do not have the non-consumer market cargoes to fall back on.
It is worth noting that all the containerized cargo in the world has never exceeded 20% by tonnage of all international ocean commerce. In over 40 years, the tonnage of cargo moved in containers has hardly ever grown at a greater pace than the expansion of the consumer market. Even so, such growth is usually one way so that ships engaged in a looped string have customarily only made money one way which has to subsidise the return leg.
Shipowners chasing container profits have always had their work cut out for them and when all is said and done, the only way to profit is to be "too big to fail" and to outlive the competition. Or rig the transportation marketplace through anti-competitive measures.
Yes, we need container shipping; it has more than proved its worth as a service mode. But it must be structured to fit in with its natural market created by the shippers and not try to be a market-maker itself. Its cargo that drives international commerce and not ocean shipping companies. Back to basics, boys!
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Related Threads
?
?
?
?
?
Ships Nostalgia
1.1M posts
124.7K members
Since 2004
A forum community dedicated to Ships, boats, and vessel owners and enthusiasts. Come join the discussion about crew logs, maritime history, shipping lines, shipwrecks, cruise ships, weather, and more!