Why Shipping Was in Trouble Even Before the Suez Clog

Sixty-five years ago, a North Carolina trucker named Malcom McLean pioneered the standardized shipping container, launching a global trading system that lifted millions of people out of poverty and created a generation of discount-minded American shoppers. Those boxes are now at the center of a worldwide transport puzzle as a shortage of containers in the right places has disrupted supply chains, idled car factories and sparked a surge in costs that’s pinching companies and consumers. And that was before a giant container ship blocked the Suez Canal in late March, snarling traffic through the vital maritime trading route. As ocean cargo rates continue to skyrocket, the White House and European regulators are raising questions about the health of competition in shipping and other freight markets.

During the pandemic and the partial recovery that’s followed, the supply of containers fell well short of demand where and when they were needed most. According to Container xChange, an online platform based in Hamburg, Germany, there are 25 million containers in use worldwide making 170 million trips a year and another 55 million made when they’re empty -- on return voyages or to be realigned with demand. The system usually works well but can run aground trying to adjust to sudden, unpredictable shocks.