Odd Lots How Gigantic Ships Are Creating Global Supply Chain Havoc
Mar 31, 2021
Marc Levinson, an esteemed economist and historian known for his expertise on global trade, dives into the issues surrounding massive cargo ships that are strangling supply chain logistics. He discusses the Ever Given’s infamous Suez Canal incident, revealing the larger system flaws it exposed. Levinson sheds light on the operational challenges posed by ultra-large vessels, from port difficulties to evolving shipping demands post-pandemic. He also emphasizes the need for companies to rethink purchasing strategies and enhance inventory management to sidestep future disruptions.
AI Snips
Chapters
Books
Transcript
Episode notes
Maersk's Big Bet
- Maersk commissioned larger ships in 2003, 60% bigger than existing ones, causing competitors to follow suit.
- This sparked a trend of building increasingly massive ships, impacting the shipping industry's economics and logistics.
Overlooked Bottlenecks
- Shipping lines prioritized their own efficiency with bigger ships without considering the impact on ports and land transport.
- They essentially passed the logistical burden onto other parts of the supply chain.
Port Congestion
- Larger, wider ships create delays at ports because existing cranes can't reach across efficiently.
- Ships designed for slower speeds can't make up for lost time, impacting delivery schedules.
