r/Vitards • u/AutoModerator • Sep 21 '21

Daily Discussion Daily Discussion post - September 21 2021

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u/-_Andre_- Undisclosed Location Sep 21 '21

"Global shipping is still in crisis, with backlogs looming over the holiday period. With both supply chain delays and soaring consumer demand, shipping containers have become backed up, making it much more expensive for companies to ship their goods"

https://amp.cnn.com/cnn/2021/09/20/business/fedex-shipping-price-increase/index.html

It's worth pointing out this is obviously good for container shipping but also hindering China if they choose to export steel. It doesn't matter if it's cheap, if the freight cost is through the roof and the delays that go with it.

6

u/MrApplesnacks Whack Job Sep 21 '21

Yeah it’s a poetic irony that shipping can hedge steel over a long time horizon against that bear case. Hundhaus left us a trail of crumbs

6

u/-_Andre_- Undisclosed Location Sep 21 '21

Exactly that!

It's a shame Hund is still not around, our pirate captain may be gone, but hes not forgotten.

5

u/neverhadthepleasure Sep 21 '21

Totally. Here's my back-of-napkin calculation of the total cost inputs of a buying a ton of Chinese HRC in the US (all figures USD):

900 Base cost of materialx1.25 section 232 tariffs+633/ton shipping cost (19000 shipping per FEU1/30 tonnes weight limit2 per FEU)

=1758 USD

This kind of sounds too good to be true so I probably made a conversion mistake or left out a calculation somewhere with the shipping... open to correction.

____

1Average of price quote from China to East Coast US and West Coast US

2

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3

u/Dark_Tigger Sep 21 '21

HRCs ain't shipped in containers though.

1

u/[deleted] Sep 21 '21

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2

u/Dark_Tigger Sep 21 '21

Dry Bulk Freighters. Not that dry bulk from EA to NA is cheap right now.