Royal Wolf sets sail for future growth in global supply squeeze
As the global logistics squeeze continues to make front page news, the humble cargo box has seized the spotlight. Logistics woes now impact an estimated two out of three businesses, with no easy fix in sight for the world’s fractured supply chain. The two-year-old pandemic continues to whip up a perfect storm of culprits: global labour shortages; container crews benched for weeks on end by Chinese quarantines; a logjam of empty containers piling up at congested ports. The result? Soaring freight and transportation costs colliding head-on with a spike in e-commerce, spawned by long lockdowns. Royal Wolf, Australasia’s largest importer of new shipping containers and the biggest rental supplier, is right in the eye of the storm. Managing Director, Neil Littlewood, speaks about the challenges of the commodities squeeze, countering customer frustrations, and finding new growth solutions in adverse conditions. Compounding forces When you consider that about 90 per cent of the world’s exports are transported via ships and that most of those goods arrive ashore in container boxes, the scale of the problem becomes clear, says Mr Littlewood. Weighing in, too, are factors not directly pinned to C0vid-19. Australia’s trade imbalance with China means empty containers aren’t returning to China. Plus, the six-day Suez Canal blockage last March effectively paralysed one of the world’s most vital shipping arteries. On top of Omicron, you’ve had the Chinese New Year with its sacrosanct shutdown of factories and the Winter Olympics in Beijing coming straight after that, says Mr Littlewood. All these ripple effects just compound in a sphere as interconnected as the global shipping industry. Rates and reliability Both container prices and production times are at least double their pre-COVID levels, reports Mr Littlewood. Pre-pandemic, if we placed an order for standard (20 or 40 foot) containers, they would be in […]