Posted on 09/07/2021 5:14:12 PM PDT by blam
Container shipping rates are in uncharted territory. Dry bulk rates are at decade highs, and the latest boom in rates because of the shipping crunch has been with vessels that move wheeled cargo across the ocean, according to Bloomberg.
Cargo ships designed to carry wheeled cargo, such as cars, trucks, trailers, and railroad cars, buses, and or even heavy machinery, commonly referred to as Roll-on/roll-off (RORO or ro-ro) ships, are demanding nearly $25,000 per day, with at least one vessel that has been booked for three years at the cost of $30,000 a day, according to Pareto Securities AS. These rates are more than triple the 5-year average rate for hiring a vessel to haul as many as 5,000 cars at a time.
According to Torbjorn Wist, chief financial officer at Oslo-listed car carrier Wallenius Wilhelmsen ASA, global supply chains remain a mess as car sales recover. This has pressured RORO vessel rates higher.
Wist believes the “capacity strain will continue for now.”
And according to industry experts, trans-pacific supply chains will remain swamped through at least the summer of 2022.
Shipping rates have soared due to the conjunction of booming demand and tangled supply chains of seaports, vessels, and trucking companies that move goods worldwide. This form of inflation pushes end goods higher as companies can no longer absorb the higher costs due to margin erosion.
Day by day, the Federal Reserve’s narrative of “transitory” inflation falls apart at the seams.
You could buy a car made in the USA, pretty sure there are lots of those.
but then there are chip shortages, which mostly are made in taiwan by tsmc.
Don’t buy new cars. Fix the ones you have.
it is cheaper and more “Earth friendly”.
In a related story do a search for the “Golden Ray” auto ship. Had 4,500 Kia SUVs onboard when the ship tipped over in the St. Simon’s sound of Georgia. It will be two years since the incident tomorrow and they are in the final stages of recovery. Search “Minorcan Mullit” on YouTube to follow the progress.
Fascinating recovery operation. They sawed the ship into 900 ton chunks so it could be picked up and moved to the salvage dock.
They made the final cut a couple of days ago and have two sections left.
Fascinating.
I'll take my 2019 Silverado over some 30 year old truck any day of the week.
I still drive my 96 Dodge PU with a V-10 in it. Getting hard to find parts though.
There is show the runs on the Science Channel I think called Shipwreck Men(best of my memory). They show the initial stages when they were getting set up and the giant lifting barge they brought in, truly massive scale of equipment,
Thanks for the update. I was wondering how the job wound up
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