THE CEO of Japanese-owned but Singapore-based Ocean Network Express (ONE), Jeremy Nixon, urges world governments to boost investment in land, sea and air transport infrastructure, reports London's Financial Times.
Mr Nixon echoes the views of Mitsui OSK Lines (MOL) president Takeshi Hashimoto, one of the Big 3 Japanese carriers that owns ONE, and who seek government action.
Mr Hashimoto said governments may need to intervene to 'restore order' to a global logistics tormented by chronic delays, supply chain disruption and record container rates, reported London's Financial Times.
Said Mr Nixon: 'There needs to be some government support here to maybe switch people out of some parts of the economy where demand is not so strong to more critical parts of the economy where the demand is very strong and important for global supply chains.'
Mr Nixon said the situation was bad in the US despite President Joe Biden's efforts to push rail freight companies, truckers and ports to increase productivity.
'I don't see any immediate improvement at the moment,' Mr Nixon said. 'If we get a bad jam up in July, August and September of 2022 in North America that could well last late into 2022 and early 2023.'
Sharp swings in consumer demand during the pandemic, disruptions to global shipping and a battered airline industry have created the severest crisis in years for global supply chains.
Although Mr Nixon's warning that supply chain problems could spill into 2023 is one of the more pessimistic, many expect next year to be disrupted.
As for other shipping groups, the upheaval has helped profits at ONE as the rates they can charge for moving goods has shot higher. Formed in 2017 to integrate the liner services of Japan's 'K' Line, MOL and NYK, the JV container carrier ONE made profits of US$2.6 billion in the quarter to the end of June, more than 15 times higher than a year ago.
ONE, which has a fleet of 220 ships, said it would be 'more cautious in not overcommitting on some of our volume contracts with our customers', said Mr Nixon.
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Mr Nixon echoes the views of Mitsui OSK Lines (MOL) president Takeshi Hashimoto, one of the Big 3 Japanese carriers that owns ONE, and who seek government action.
Mr Hashimoto said governments may need to intervene to 'restore order' to a global logistics tormented by chronic delays, supply chain disruption and record container rates, reported London's Financial Times.
Said Mr Nixon: 'There needs to be some government support here to maybe switch people out of some parts of the economy where demand is not so strong to more critical parts of the economy where the demand is very strong and important for global supply chains.'
Mr Nixon said the situation was bad in the US despite President Joe Biden's efforts to push rail freight companies, truckers and ports to increase productivity.
'I don't see any immediate improvement at the moment,' Mr Nixon said. 'If we get a bad jam up in July, August and September of 2022 in North America that could well last late into 2022 and early 2023.'
Sharp swings in consumer demand during the pandemic, disruptions to global shipping and a battered airline industry have created the severest crisis in years for global supply chains.
Although Mr Nixon's warning that supply chain problems could spill into 2023 is one of the more pessimistic, many expect next year to be disrupted.
As for other shipping groups, the upheaval has helped profits at ONE as the rates they can charge for moving goods has shot higher. Formed in 2017 to integrate the liner services of Japan's 'K' Line, MOL and NYK, the JV container carrier ONE made profits of US$2.6 billion in the quarter to the end of June, more than 15 times higher than a year ago.
ONE, which has a fleet of 220 ships, said it would be 'more cautious in not overcommitting on some of our volume contracts with our customers', said Mr Nixon.
SeaNews Turkey
