MOL exec ponders potential governmental intervention in container crisis

It might prove necessary for governments around the world to intervene and bring order to the chaotic and stretched out supply chains, says CEO of Japenese MOL to Financial Times.

Photo: MOL Mitsui OSK Lines PR

CEO of Japanese carrier Mitsui OSK Lines (MOL) projects that it might be necessary for governments to intervene and restore order to the global supply chains.

The shipping group's container business is major carrier Ocean Network Express (ONE), which, much like other container lines, has seen earnings skyrocket in a market driven by huge demand and a shortage of capacity, sparking record-high freight rates.

Led by CEO Takeshi Hashimoto, MOL expects that the overloaded container market will continue through to 2022 at the very least, and in his assessment to the Financial Times, he notes that the industry has underestimated how much of an impact the Covid-19 crisis has had on the freight markets.

Consequently, it might prove necessary for governments to step in and ensure some level of co-ordination or assistance.

"If left entirely to the market economy, individual companies and individuals all doing their utmost to find the best solution for themselves will result in more and more turmoil and an out-of-control situation," said Hashimoto to the British news outlet.

He adds that although it is vital to respect the free market and competition, the shipping industry's global supply chains constitute an important part of the infrastructure that economies rely on in order to function.

English Edit: Christoffer Østergaard

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