The $1 trillion container shipping industry is in a slowdown. Literally.
) to shoe seller Rothy’s, who have never stopped selling products to homebound consumers, ranging from books and shoes to exercise equipment, much of it sold online.“What we are seeing is quite a mixed situation from cargo owners, some of which are resuming normal shipment of their cargoes, others are requesting routings via longer transit times,” said Marcus Leaver, chief operating officer of sea freight at Hellmann Worldwide Logistics, which organizes shipments for companies such as retailers.
It added that 99% of its imports from Asia were now coming by sea because air costs had gone up due to a lack of flights and the priority given to medical equipment.The stakes are high for the container industry. Retail goods such as clothes, luggage and furniture represent about 15% of shipped volumes, a Reuters analysis of industry data shows.
Shereen Zarkani, Maersk’s global head of sales, told Reuters: “One customer told us: If you make my container go around the world a couple of times that would be good.” Jay Foreman, CEO of Florida-based toy supplier Basic Fun, which sells to retailers including Walmart and Target Corp , said he expected a 20% decrease in business this year.Indeed, the outlook for retail is dim: Euromonitor forecasts that U.S. retail sales will fall more than 6% this year.
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