Traverse, go, provide thy money
A year ago, no one would have listed “container shortage” as one of the primary constraints in global trade. But the fact is that there is acute shortage of containers in global supply chains and it is severely constricting the global trade. This has also led to significant rise in logistics costs. In that sense, this condition in global supply chain may at least qualify to be a grey swan (if not black). There are multiple reasons for shortages of containers in global supply chain. The prominent amongst them being the following: (a) Chinese economy has recovered faster than any other major economy in the world. The Chinese exports to the western countries have mostly normalized whereas western countries are not in a position to export the things back. This has led to the empty containers being stuck on major western ports. (b) Chinese exporters are paying huge premium for empty containers. Consequently, it has become profitable for shipping lines to...