Economic Ramifications

Cactus noticed this item, about how Toyota is now renting ships to just sit in a Swedish port to store cars they can't sell.

That was interesting, but I think the really interesting point came later in the article:

Wallenius Wilhelmsen operates a fleet of 166 vessels shipping cars around the world. The company warned last month that it would be forced to scrap dozens of vessels. The sales slump would have a “strong negative impact” on profits this year, the company said.

Think about that for a second. If they scrap a significant percentage of their fleet, then when the world's economy turns around, there are going to be that many fewer ships to move vehicles for export markets. Car carriers are specialized ships and you just don't shit them off an assembly line like a bunch of Krispy Kreme donuts.

Which means exported vehicles will cost more, because the shipping companies will be able to charge more to ship them (due to lack of shipping capacity).