Analyst Lars Jensen predicts that major ocean carriers, equipped with ample funds following the pandemic, will actively pursue the ownership and operation of supply chain “chokepoints.” These chokepoints refer to strategic assets in the shipping industry, such as ports or terminals, that possess the capability to control or influence the flow of goods and services.
Jensen argues that having control over chokepoints provides a competitive advantage for carriers. By securing these assets, carriers can effectively manipulate supply chain dynamics, impacting the efficiency and cost-effectiveness of global trade. This trend is expected to gain momentum as carriers seek to strengthen their positions in the post-pandemic recovery period.
As a result of the pandemic, ocean carriers have experienced increased profitability due to surging demand for goods as economies reopen. Jensen suggests that carriers will utilize their enhanced financial resources to invest in critical infrastructure. By owning and operating chokepoints, they will have greater control over shipping routes, port capacities, and key trade hubs, allowing them to better serve their customers while potentially limiting competitors’ access.
However, it is worth noting that the acquisition of chokepoints may face regulatory scrutiny and possible challenges. Governments and regulatory authorities may closely monitor these acquisitions to ensure fair and equitable access to essential trade infrastructure. Any attempts to gain a monopoly or limit competition may be met with resistance and appropriate regulations.
In conclusion, Jensen emphasizes that the next wave of spending by ocean carriers is likely to focus on obtaining chokepoint assets. These strategic acquisitions will provide carriers with significant influence over global supply chains, reinforcing their competitive edge. The pursuit of these assets will be closely watched by regulatory bodies to maintain fair and open access to critical trade infrastructure.
Definitions:
– Chokepoints: Strategic assets in the shipping industry that control or influence the flow of goods and services.
– Supply chain dynamics: The complex network of activities, organizations, resources, and processes involved in delivering goods and services to end customers.
– Post-pandemic recovery: The period following the COVID-19 pandemic, characterized by economic rebound and stabilization.
Sources:
– Lars Jensen, maritime industry analyst.