McKinsey’s Steve Saxon and Jaana Remes discuss why container shipping costs are surging and give their take on what lies ahead for the industry.
Video: https://www.mckinsey.com/Videos/video?vid=6266804341001&plyrid=HkOJqCPWdb
In this video conversation, Steve Saxon, McKinsey’s Shenzhen-based partner leading the Travel, Logistics & Infrastructure Practice in China, and Jaana Remes, a partner with the McKinsey Global Institute, discuss this puzzling phenomenon.
Watch the video to learn more about:
- how changing consumption patterns in the United States are driving up demand for shipping and causing congestion in ports and the surrounding hinterland infrastructure
- how the COVID-19 pandemic has led to port lockdowns and container ships being taken out of service, resulting in an overall reduction in shipping capacity
- why the industry’s response of aggressively adding supply may not be the wisest move
- the longer-term implications of the boom-and-bust cycle of shipping rates and when rates could be expected to normalize