Buffett Trains, Maersk, and oil prices on the up
Upswing in demand is stimulating worldwide boom in shipping and freight.
A.P Moeller-Maersk A/S’ shares have surged, reports Bloomberg today. Despite supply being affected by cancelled sailings during the early days of the pandemic, the world is now restocking with alacrity and land freight is also benefiting.
Warren Buffett’s BNSF Railway Co. is riding a boom and oil has also risen, with prices now over $50 a barrel. The upswing is attributed to a change in consumer behaviour, with many people spending their money on physical goods rather than ‘unobtainables’, such as foreign holidays and restaurant meals.
Lars Mikael Jensen, head of network at Maersk, says: “This is the perfect storm for global container flows… The current restocking in the US and Europe raises demand, whilst global measures to contain the pandemic cause severe strain across the supply chain from lack of vessels, containers and trucking capacity.”
