Ocean Liners flush with cash and record profits from the past two years are positioned to invest that money in a way that can benefit their organizations and our industry. Enhancements that can support and improve supply chain solutions are sorely needed and have not been considered for many years. The reality of the situation is that ocean liners do what ocean liners do best — buy ships — and a majority of those profits are destined for increased capacity.
As ocean shipping volumes drop to pre-pandemic levels, so does the revenue. Gone are five-figure prices for a container move that generated notable profits, replaced by much lower four-figure prices. As ocean carriers struggle with overcapacity chasing a limited supply, the end result is lower competitive pricing. Therefore, additional capacity entering the market in 2023 is not a remedy, and has the exact opposite effect.
If history has shown us anything, it is that it is unprofitable to do business in an overcapacity marketplace. The result will be carriers losing money on trades once very profitable, forcing cutbacks on plans for any enhancements before they even begin. The money gained in the last few years is better put to use strengthening our industry for the next several decades. More capacity is not the answer.