Bottlenecks in the global shipping industry are difficult to eliminate(7)

For some countries, poor shipping logistics has a negative impact on exports. Vinod Kaur, executive director of the Indian Rice Exporters Association, said that in the first three months of the 2022 fiscal year, basmati rice exports have fallen by 17%.

For shipping companies, as the price of steel rises, shipbuilding costs are also rising, which may drag down the profits of shipping companies that order high-priced ships.

Industry analysts believe that there is a risk of a downturn in the market when ships are completed and put on the market from 2023 to 2024. Some people are beginning to worry that there will be a surplus of the new ships ordered by the time they are put into use in 2 to 3 years. Nao Umemura, chief financial officer of the Japanese shipping company Merchant Marine Mitsui, said, "Objectively speaking, I doubt whether the future freight demand can keep up."

Yomasa Goto, a researcher at the Japan Maritime Center, analyzed, "As new orders continue to emerge, companies are aware of the risks." In the context of full-scale investment in a new generation of fuel ships for the transportation of liquefied natural gas and hydrogen, the deterioration of market conditions and rising costs will become risks.

UBS research report shows that port congestion is expected to continue until 2022. Reports released by financial services giants Citigroup and The Economist Intelligence Unit show that these problems have deep roots and are unlikely to disappear anytime soon.