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by hef19898 1402 days ago
That article is actually a little shallow. The Ever Given had close to nothing to do with any issues at US ports (the majority of the Asian traffic to the US goes to west coast ports). Larger ships are good in terms of economics of scale. That card was over played a bit in the past it seems, so. There are still huge fleet of smaller ships out there, feeder vessels, connecting smaller ports to those served by the huge vessels. We are currently working, in container shipping, in hub and spoke system. Whether or not that is better then direct lines is a good question, there benefits to both models.

And calling container lines a cartel is strong claim. In fact, for years prior to Covid container rates were so low that companies were barely profitable. There can be the argument made that those low rates contributed to the bankruptcy of Hanjin. Cartels usually don't result in low prices.

That being said, the container issues, and there were a ton of those prior to Covid, during Covid and now that need to be solved, are a logistics issue. Serious enough to have impacts on supply chains, but not enough by themselves to screw things up to the degree we see right now.

>> The game in the business is to acquire market power and then use mega-ships to offload costs onto others and block new entrants.

That sentence could use detailed explanation, because as it is it doesn't make any sense to me.