The decision by major retailers like Home Depot and Ikea to charter their own containerships has drawn significant attention, highlighting the severity of global supply chain congestion and disruptions. Speaking at a High-Level Maritime Dialogue hosted by FIATA, James Hookham, Director of the Global Shippers Forum (GSF), described this crisis as the “Great Shipping Crisis of 2021,” emphasizing the uncertainty surrounding its resolution.
GSF, which represents the interests of global shippers, has observed a unique shift—some of its members have transitioned from traditional cargo owners to vessel operators by chartering containerships. Hookham noted that a select group of shippers took this bold step due to the unpredictability of shipping schedules and soaring freight rates that far exceeded operating costs.
The Rise of Retailer-Owned Shipping Operations
For years, speculation swirled around Amazon potentially entering the ocean freight industry, especially after registering as a Non-Vessel Operating Common Carrier (NVOCC). However, until the recent supply chain crisis, large retailers managing their own shipping fleets remained a theoretical concept.
Port of Los Angeles Executive Director Gene Seroka recently hinted that new entrants into ocean freight, including some major retailers, face operational challenges. While these companies can charter vessels, they still struggle with port congestion, often waiting weeks for unloading slots behind long-established shipping lines.
A Temporary Fix or a Long-Term Strategy?
Hookham questioned whether these retailers would continue operating their own containerships or abandon the effort once supply chain conditions stabilize. He remarked, “I don’t know what their charter terms are or what their experiences have been, but I expect they will soon need to decide whether to ‘give up the hobby’ or integrate it into their routine operations.”
While some industry experts view this trend as a short-term anomaly, it raises a critical question—will major retailers revert to their core business or recognize the long-term value of having greater control over their supply chains? Only time will tell.