Supply Chain Snarl Driving Prices Up
Transportation Secretary Pete Buttigieg says the delays at the ports of Long Beach and Los Angeles are not just about ships.
LEARN MORENovember 2, 2021
The world's biggest shipping company, Denmark's A.P. Moeller-Maersk, is adding aircraft to its operations: three leased cargo planes to be operational from 2022 and two Boeing aircraft to be deployed by 2024.
The urgent need for more shipping capacity comes amid soaring consumer demand for everything from cars to furniture and labor shortages in the rebounding economy, leading to major backups at ports and higher prices. The supply chain issues have caused a shortage of key equipment: shipping containers.
In a statement, Maersk said its key ocean business is now "expected to grow below the global container demand" amid uncertainty around the supply chain logjams.
Meanwhile, Maersk reported Tuesday a sharp rise in earning amid strong worldwide demand for shipments of goods as the economy bounces back from the pandemic.
The Copenhagen-based company said revenue grew nearly 68% in the third quarter, to a record-high $16.6 billion, up from $9.9 billion in the same three-month period last year. It reported profits of $5.5 billion, up from $947 million in the same period last year.
The company also announced its intention to acquire Senator International, a global freight forwarding company with strong air freight offerings.
Additional reporting by The Associated Press.
