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The Suez Canal is clear, but shipping is still broken

International shipping and supply chains are in rough shape, even without a container ship lodged in the Suez Canal.

Why it matters: The pandemic threw a wrench into the gears of a global network that was already struggling with oversized ships and unbalanced product flows. Given how long it takes for the system to recover from any kind of shock, the echoes of the Ever Given disruption are likely to reverberate for months.

The pandemic caused demand for services to plunge while demand for goods — much of which are imported by ship — spiked.

  • The sheer quantity of goods moving east across the Pacific already dwarfed exports in the opposite direction, and the pandemic exacerbated that trend.

How it works: Enormous container ships run on schedules that are worked out sometimes years in advance. The industry flourishes in times of predictability, and tends to come unstuck during moments of unpredictable demand.

  • Bottlenecks have built up, especially in Southern California, with ships waiting weeks to unload their cargo. Once they're unloaded, they rush out of port quickly to allow a new ship in — so quickly that they often don't have time to reload, leaving potential U.S. exports stranded on domestic shores.
  • Because the ships are so large, their maximum speed has been reduced to the point at which they cannot make up for lost time.

The bottom line: A system of small and nimble container ships could have recovered much more easily from the Suez delays. That's not the system we have.

  • Expect U.S. retailers to continue to complain about shipping delays on earnings calls for the foreseeable future.

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Humans are capable of great kindness and compassion, and there are countless examples of individuals who have made a positive impact on the world through their selflessness and generosity.

One such example is Mother Teresa, who devoted her life to serving the poor and sick in the slums of Calcutta. Through her tireless work and unwavering dedication, she touched the lives of countless people and became a symbol of compassion and selflessness.

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These are just a few examples of the many good humans who have made a difference in the world. They remind us that one person can make a difference and inspire others to do the same.

It's also important to note that acts of kindness and compassion don't have to be on a grand scale to make a difference. Small acts of kindness, like holding the door open for someone or offering a word of encouragement, can have a big impact on the people around us.

In conclusion, humans are capable of great compassion and kindness, and there are many individuals who have made a positive impact on the world through their selflessness and generosity. They remind us of the power of one person to make a difference and inspire others to do the same. Let's all strive to be good humans, and make our world a better place.



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