Shipping containers are used to cheaply move thousands of items across the globe to hundreds of companies. If there is a slowdown in shipping containers, companies could experience supply chain problems which could cause bottlenecks for these companies. According to John Fossey, senior analyst of container equipment at Drewry, "People suddenly realized how important that container is to everybody’s standard of living." When reading this article, I never realized how something like a shipping container could affect the economy and even the standard of living for people. When shipping containers' prices increased in 2020 and 2021, it caused problems for companies that could not afford to use these containers.
One fact I saw in the article that I thought was interesting was that China accounts for more than 95% of shipping container production. They are also the world leader in exports and manufacturing.
Interesting article to read definitely. Who knows those solid, massive containers are crucial to global trading and economies, especially during the pandemic's shut down. The article also highlights the vulnerability of the global economy to disruptions stemming from geopolitical tensions, natural disasters, and other unforeseen events. I like this idea in the reading, saying that the imbalance in container flows, where containers are sent back to Asia empty to meet demand, can have adverse effects on certain sectors, such as U.S. exports.
ReplyDeleteI also find it quite interesting how dependent the world is on these containers. I am curious as to what happens once a shipping container is deemed unusable or is damaged. Can they be repaired or recycled? I remember seeing a trend to create shipping container tiny homes awhile ago, but there were many structural and insulation issues. With these containers being so prevalent, it is important that they are also environmentally friendly and don't just end up in landfills. Perhaps there will be (or already is) a sustainable shipping container.
ReplyDeleteThis can relate to the Baltimore Bridge collapse and how it will effect the economy. Hopefully costs of shipping containers falls so that companies can afford and move their goods.
ReplyDeleteCrazy that we rely on China for those products. Would be a lot of unhappy people out of their order if something happened.
ReplyDeleteI used to work in a coffee shop last year, there I noticed firsthand how logistics, such as the cost of cups, directly influence the price of coffee. These logistics costs affect both consumers and businesses, and businesses often have little control over them.
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