THE president of Japanese shipping giant Mitsui OSK Lines (MOL) says governments may need to intervene to 'restore order' to a global logistics tormented by chronic delays, supply chain disruption and record container rates, reports London's Financial Times.
'If left entirely to the market economy, individual companies and individuals all doing their utmost to find the best solution for themselves will result in more and more turmoil and an out-of-control situation,' said mol president Takeshi Hashimoto, whose company is one of the three elements of Ocean Network Express.
He said that the industry had miscalculated how long the Covid disorder would last. While some shipping companies had predicted normalisation early next year after the initial shock of the crisis, MOL has recently extended its forecast to the end of 2022.
'We need to provide a very stable service to end users and customers and at the end of the day, what we do affects people's day-to-day lives, so something needs to be considered,' Mr Hashimoto said.
In the US, the Biden administration has exerted pressure on the ports of Los Angeles and Long Beach in California, the country's main gateways for trade with China, to extend gate hours for trucks to pick up cargo in an attempt to alleviate vessel congestion, said the FT.
Last week, the ports announced that following consultations with the US transport department, the port of Long Beach would trial 24-hour operations, while Los Angeles would extend night-time weekend hours.
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'If left entirely to the market economy, individual companies and individuals all doing their utmost to find the best solution for themselves will result in more and more turmoil and an out-of-control situation,' said mol president Takeshi Hashimoto, whose company is one of the three elements of Ocean Network Express.
He said that the industry had miscalculated how long the Covid disorder would last. While some shipping companies had predicted normalisation early next year after the initial shock of the crisis, MOL has recently extended its forecast to the end of 2022.
'We need to provide a very stable service to end users and customers and at the end of the day, what we do affects people's day-to-day lives, so something needs to be considered,' Mr Hashimoto said.
In the US, the Biden administration has exerted pressure on the ports of Los Angeles and Long Beach in California, the country's main gateways for trade with China, to extend gate hours for trucks to pick up cargo in an attempt to alleviate vessel congestion, said the FT.
Last week, the ports announced that following consultations with the US transport department, the port of Long Beach would trial 24-hour operations, while Los Angeles would extend night-time weekend hours.
SeaNews Turkey