How do we get in on this .... /sarc
It’s REEFER MADNESS again.
Interesting aspect I hadn’t thought of.
I can’t imagine why anyone would still be shipping anything into China.
Maybe some final shipments are arriving now, but business there effectively stopped 6 weeks ago - first for Lunar New Year and then for Corona-virus.
In a few weeks, there will be nothing coming in.
Can someone explain what this means in layman’s terms? What is a reefer in this context? What is the cause and effect of what is being described?
I wonder how much one of the refrigerated container costs. Cannot be cheap to just leave on the dock.
Chaos in the maritime shipping world - there goes the JIT formula - shortages like those now seen in northern Italian grocery stores will begin to become more common.
OK, gang. I’m going to take a “toke” at this, and render your drug-induced thoughts “up in smoke.”
“A reefer container is a refrigerated shipping container used to store or transport frozen or cold goods perishable items or goods that require temperature control.”
So now you know the full “dope” of the story, which was written in a trade publication with jargon specific to the industry.
Bad enough in itself, but the flow through and ripple down effects can be much worse as they impact other just in time pieces of the supply chain’s process stream
Halfway down the train one container stood out with HUGE letters on the side:
I thought "uh oh."
It’s hard to figure out what’s going on from the article. Are shippers refusing to send their containers to Chinese ports? Are the Chinese ports short of workers and cannot unload the incoming containers?
Does this portend starvation in China?
That’s another big “oopsie” for China. I’d imagine President Trump will have a whole lot of leverage when negotiating with them (and a whole lot of risk because they will be desperate).
When this passes the Chinese will need to purchase an epic amount of American agricultural products.
When that happens, the 2020 election is game, set, and match.
Whatever one thinks of the virus and any real health impact it may have, the economic impact is considerable and ongoing.
The trajectory is toward severe.
Transpacific shipping has been cut in half (-46%) this month. Pacific regional shipping is down ~60%. Demand for all commodities is down, to include oil.
.
From the article: “With the coronavirus outbreak showing no signs of abating in China...”
Actually, if you believe the numbers China is putting out, the virus has been brought under control in nearly all the provinces other than Hubei where Wuhan is located. Many of them are showing zero new cases each day now. Others report one or two new cases per day.
I’m very skeptical that a province of 50 million people with over 1,000 confirmed cases has managed to reduce new cases to zero, but that’s what they’re putting out. If true, we could learn a thing or two from the Chinese on bringing an outbreak in an area under control, but I have trouble believing the numbers. Anyone have insights shared by family or friends over there? I realize it’s difficult to get accurate information.
Something most of the comments regarding the reefers seem to miss is that they generally plug into an electrical supply. The problem on the docks is apparently that they have run out of empty outlets. That’s why the article references dropping off cargo containers at other docks, ones with electrical outlets still available, presumably.
Dude, you’re harshing muh buzz!
Well that is going to make the pork market interesting.