Supply Chains Snap Under Pressure
Despite the massive disruption, we still see opportunities across some affected sectors.
When looking at the current shipping crisis, it’s important to know the background. Since 2015, new vessel orders in freight shipping had fallen markedly, dropping by roughly half from the first half of the last decade. This tight capacity kindled the fire we are now witnessing, with shipping demand far outstripping supply and freight rates rocketing. The match that started the fire, however, was the coronavirus pandemic, coming hot on the heels of the already disruptive U.S.-China trade war.
Michael Field does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.