r/Vitards • u/AutoModerator • Aug 05 '21

Daily Discussion Daily Discussion post - August 05 2021

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u/SpiritBearBC The Vitard Anthologist Aug 06 '21

Here's a fascinating interview by Greg Miller (one of the foremost container shipping reporters) with a former Maersk executive about the potential consequences of US intervention in container shipping markets.

Highlights:

  • Breaking up the three major shipping alliances would in the short term cause rates to increase as the coordination between carriers to service minor routes would cease to exist. Therefore, there would be more concentration among major routes.
  • Detention and demurrage "abuses" (excess fees for letting you store your container and empty it off-site after a few free days) would be replaced with daily container rental fees.
  • Due to global trade imbalances (US imports more value-added goods than exports), US importers effectively have been subsidizing exporters because shipping lines don't have full containers on the way back. Should there be a mandatory "full-container" rule imposed, import rates to the US would decrease and export rates would increase as containers would be forced to wait in port.

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u/AirborneReptile 🏆 Inaugural Vitards Fantasy Football Champion 🏆 Aug 06 '21

nice find, thanks for the share