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The chaos of the supply chain is blooming more curiously

The chaos of the supply chain is blooming more curiously. Many goods suddenly become cheap flotsam at their destination.

The chaos of the supply chain is blooming more curiously
Yazar: Tom Roberts

Yayınlanma: 2 Aralık 2021 02:15

Güncellenme: 11 Mayıs 2024 04:15

The chaos of the supply chain is blooming more curiously

The never-ending chaos of the supply chain is blooming more and more curiously. According to experts, innumerable containers with food, cars, clothing or household necessities are piling up at the world's major goods transshipment points, which suddenly no longer have any buyers after a long odyssey at their destination. Many customers refuse acceptance because critical delivery dates have been exceeded and goods are no longer fresh or are simply no longer needed. The result: cargo ports are developing into giant open-air junk shops. Niels Larsen, President of the global transport and logistics company Air & Sea North America estimates the number of containers that have no longer reached their addressees at three million. "If a product does not arrive at its destination for a long time, it often loses its original value," quoted the US finance agency Bloomberg Tom Enders, owner of The Salvage Groups, a recycling company for abandoned cargo based in the US state of Michigan. The shipping companies contact his company so that they can clear the containers. That way, at least some more money will come in. A total of 90 percent of goods and goods worldwide are now transported by container ships. Around the world, around 25 million steel boxes are constantly out and about on the world's oceans. The vast majority of clients are major customers. Delivery dates are an important part of the contract for worldwide mail order business. Among other things, perishable goods, seasonal items especially for summer or winter temperatures or supplier parts that may be attached to other orders are transported in the containers. If the goods arrive too late, there is no longer any need for them. Retrieving the containers in such cases is too costly for overseas owners. Freight rates have more than doubled since April. The storage of goods is also too expensive. In addition, time is of the essence, containers are scarce. Shipping companies therefore only have one interest: loading them with new goods as quickly as possible and sending them back on their way. This is exactly where the recycling companies come into play: Stranded containers are welded on at the transshipment points, and a quick glance is taken. Companies like The Salvage Groups then decide whether the goods are still worth cash - or whether the shipping company may have to pay extra for disposal. Business is booming.
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