Because the world economy is currently overproducing (more supply than demand) to prevent prices from falling, these ships (esp. oil tankers) are being "transformed" into storage. Either by taking a longer path, or by outright idling them in front of harbours.
Since nobody wants to pare back production (because the last one to reduce production will retain marketshare and revenue and jobs and ...) this is providing a short intermission where prices don't have to drop.
This extra capacity that slower shipping provides is filling up fast, it will be full in less than 2-4 months (measured starting in december), and the next leg down for the global economy will begin.
Since nobody wants to pare back production (because the last one to reduce production will retain marketshare and revenue and jobs and ...) this is providing a short intermission where prices don't have to drop.
This extra capacity that slower shipping provides is filling up fast, it will be full in less than 2-4 months (measured starting in december), and the next leg down for the global economy will begin.