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Container chaos - Forty Feet Giant

Imagine if the total world was paused for some days due to a health crisis and restarted with a large number of steroids in terms of money available. What you have just experienced in this has been our lives in the past twenty months.

In recent months you must have heard and read the word "Inflation". And you will be surprised to know that all this is caused due to forty feet metal boxes that no one was interested in making or owning for many decades.

To prove this let us look at some facts, initially when the global lockdown was imposed then global trade came to a halt resulting in no new orders, and post reopening the new orders hit the factory floors like a tsunami. This resulted in logistical chaos leading to many containers stranded empty at ports putting massive pressure on availability.

Once the availability improved as global trade eased, the large corporations blocked containers for a longer duration than usual at higher prices quoted by suppliers. This resulted in balance containers turning even more costly especially when one box can have maximum goods worth $50,000 on average being quoted at $15,000 rental.

The real problem is that all this congestion and chaos might just turn into a nightmare very soon. As containers ships are not able to dock and unload goods in time to fill the supply chain during the festival season. Cause post the festival season this will just become inventories and result in glut. Though it would be good as it would result in lower inflation it might result in an economic crisis due to such volatility.


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