Shortage of ocean containers
The increases will roll to consumers
Exports from China to the West are recovering, but due to disruptions in port operations empty containers are not returning to the home port. The result: exporters get stuck with no means of transportation. At the same time, the damage to the supply chains increases the cost of the raw materials used to produce the containers.
On the one hand exporters enjoy an increase in international trade and stable demand from the US and Europe but on the other hand there is a real difficulty in transporting the products to customers.
Faults in global supply chains are overshadowing the increase in demand.
The increase in exports from China to the West, combined with the disruptions caused to ports by the covid, caused many containers to be shut down, leading to a long queue of ships trailing outside ports and a sharp rise in shipping rates.
According to ComTainer CEO Mr. Yaron Per, the cost of shipping a 40-foot container from China to the U.S. Jumped more than four times. “In the last two decades we have not encountered anything like this, the jump in prices is huge.”
China has recovered from the epidemic at a faster rate than any other major economy. At the same time, exports of products such as electronics and medical equipment jumped during the closure periods. Export volumes have been climbing at double-digit rates for several months, and by the end of 2020 China’s trade surplus soared to a record high. But the rise in demand for Chinese products comes as ports across the U.S. and Europe face restrictions on curb proliferation and a shortage of manpower, leading to delays in returning containers to ports in East Asia.
A shortage of truck drivers and warehouse workers around the world is hurting the ability of the ports to return the containers to China. “There are a large number of containers that just sit in the middle of nowhere. Australia, Eastern Europe, Central America. This is a kind of perfect storm that prevents them from returning to Asia,” says Mr. Per.
So … how do you deal with the growing global shortage of containers?
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If you are an exporter whose shipping costs in a marine container are becoming expensive every day, this is exactly the time to maximize the process of building your container and strengthen and streamline the relationship with your client in the destination country, ComTainer is just for you.
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