[HN Gopher] World Container Index
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       World Container Index
        
       Author : doener
       Score  : 51 points
       Date   : 2022-07-09 09:14 UTC (13 hours ago)
        
 (HTM) web link (www.drewry.co.uk)
 (TXT) w3m dump (www.drewry.co.uk)
        
       | [deleted]
        
       | flyinglizard wrote:
       | The shockwave of excess inventory and capacity is coming. One of
       | our suppliers in the automation space told us they experienced
       | over 70% growth in orders last year (compared to 2019 levels).
       | This can't be explained by organic growth; only by their
       | customers increasing stock levels. Once demand starts dropping
       | (we are in recession territory after all), all this stock is
       | going to cause a mess.
       | 
       | Word is some prominent semiconductor suppliers (think TI, ST) saw
       | this coming and refused to go crazy on new capacity (which takes
       | years and billions), instead waiting for the demand to subside;
       | but this is 3rd hand info I got.
        
         | citrin_ru wrote:
         | > Once demand starts dropping, (we are in recession territory
         | after all), all this stock is going to cause a mess.
         | 
         | What is an alternative to stockpiling? JIT logistics still
         | haven't recovered after COVID.
         | 
         | If we talking about cars many people still have to wait months
         | for the model they want. Used car prices are still high too.
         | IMHO demand will not go off the cliff unless prices will rise
         | (much) faster than median income.
        
           | flyinglizard wrote:
           | There's no alternative, other than controlling more of your
           | supply chain in house where you can.
           | 
           | In the industrial segment, the implications of not having
           | products to supply are devastating. Im sure ST and TI lost
           | many new designs and were designed out of many other designs
           | over the past two years. With five to ten year design cycles
           | for many products, this will have long term effects.
        
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       (page generated 2022-07-09 23:02 UTC)