In refers to additional costs in ports it's worth reminding what Soren Thoft said at TPM in March.
On passing costs vs. absorbing them:
“these cost either will have to revise our network and withdraw coverage, or we will have to add that cost on top of and ultimately the consumer will have to pay”
On the impact:
“if this is pushed through as right now laid out, I see a significant impact… that’s 20%, 25%. So it’s significant”
He estimated $600-800 per TEU impact from the World Shipping Council assessment of “$20 billion plus” industry-wide.
On Oakland specifically:
“we can’t proceed to Oakland if that costs another million doing another thousand [moves] when we’re doing 12,000 in LA Long Beach. So I think a lot of the marginal ports, the peripheral ports will be at risk, and we’ll have to adopt our services”
On what happens if they can’t pass costs:
“if we’re unable to pass on the additional cost, we will have to re-look at our network, we will have to look at all the trades that are maybe more attractive… we’ll withdraw capacity”
In refers to additional costs in ports it's worth reminding what Soren Thoft said at TPM in March.
On passing costs vs. absorbing them:
“these cost either will have to revise our network and withdraw coverage, or we will have to add that cost on top of and ultimately the consumer will have to pay”
On the impact:
“if this is pushed through as right now laid out, I see a significant impact… that’s 20%, 25%. So it’s significant”
He estimated $600-800 per TEU impact from the World Shipping Council assessment of “$20 billion plus” industry-wide.
On Oakland specifically:
“we can’t proceed to Oakland if that costs another million doing another thousand [moves] when we’re doing 12,000 in LA Long Beach. So I think a lot of the marginal ports, the peripheral ports will be at risk, and we’ll have to adopt our services”
On what happens if they can’t pass costs:
“if we’re unable to pass on the additional cost, we will have to re-look at our network, we will have to look at all the trades that are maybe more attractive… we’ll withdraw capacity”