Active container demand in the U.S. is having implications for global container shipping costs. The FMC has received complaints that carriers are purposely refusing to ship  U.S. exports in favor of the quicker turnaround of empty containers back to China. Nico Hecker and Christian Halgmann from Hapag-Lloyd´s Container Steering department explain why now it is particularly important that everyone at Hapag-Lloyd works closely together. Exporters The Federal Maritime Commission will probe shipping lines that agricultural exporters say are holding back container⦠Container shortage: âIt´s currently an enormous unseen challengeâ in International Shipping News 23/11/2020 Empty 40-foot-containers are currently in short supply â more than ever before. News For Electronics Purchasing And The Supply Chain, Mouser Opens HQ-Based Customer Service Center, Flex Power Partners With Eprotek in China. The recent shortage of containers is because of the current economic activities in China, as well as the increase of the demand for Chinese goods in the US and all European markets providing to the Christmas and also New Year holidays. ⦠E-commerce sellers are also feeling the effects of the peak season surge, including those  using Amazon Fulfillment, with providers reporting delays of up to 10 days to schedule delivery to FBA warehouses. Marcus Hand | Dec 09, 2020 US Federal Maritime Commission ⦠Asia-Mediterranean prices climbed 12 percent, to $2,714/FEU, an 81 percent annual increase, and Asia-North Europe prices climbed 8 percent to $2,443, a multi-year high and 68 percent higher than last year. (Photo by Akira Kodaka), Shipping rates from China spike ahead of US holiday season, Singapore's Mapletree plans $385m logistics center in Japan, Vietjet and UPS start joint cargo service between Asia and US, Nippon Express doubles China-Europe rail cargo as virus hits flights, US-China shipping rates move into calmer waters. The most serious issues appear to be in India where a number of ports and container depots have no empty containers available. While the world is together in fighting this deadly disease, measures to revive the sector is taking place with full vigour, and we can soon expect things are getting back to normal once again. Problems at ports: Bottlenecks, container shortages, rate hikes â Freightonomics (with video) Kaylee Nix Wednesday, November 18, 2020. Usually, container traffic volume tends to rise from August to October ahead of the year-end shopping season in the U.S. and level off after that. Peak volumes continue to surge, but China-U.S. ocean rates have stayed unchanged for two straight months, according to Freightos, likely due to pressure from Chinese regulators. And rates are expected to keep climbing as some carriers cancel sailings to prioritize capacity and equipment in other regions. Shipping container shortage hits global trade The costs of shipping goods in containers have risen rapidly since the start of the coronavirus pandemic. Singapore is a trading hub for Europe, the Middle East and East Asia, and operators reship their cargo from China and Southeast Asia to the rest of the world there. The equipment shortage, as well as continued strong volumes, are also being felt on Asia-Europe and Asia-Mediterranean lanes, where rates jumped significantly this week. There is not enough transportation space from Shanghai to Southeast Asia as container vessels and air containers have been unable to return to Asia. Most shipping lines are now reporting serious shortages of empty containers for loading throughout Asia. Whatâs new: Fresh data from container tracking service provider Container xChange indicates ports in Shanghai for the week ending Oct. 22 faced a shortage of 40-foot containers not seen since January 2019. And this acute equipment shortage is leading to more scrutiny from regulators on multiple fronts. Instead, Drewry noted that disruption to container supply chains, caused by an unprecedented number of blanked sailings, which reached 30% of the sailings on some trades in Q2 2020, has led to the current shortage of empties The cost to ship a 40-foot container from Shanghai to the U.S. has also remained at an all-time high of $3,913 since July. Chinaâs Container Shortage Pushes Global Freight Prices Through the Roof December 4, 2020 The corona pandemic and its global effects has resulted in a serious container shortage in China. {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}}. So far, it hasnât affected rates. 23 November 2020 Empty 40-foot-containers are currently in short supply â more than ever before. Container shortage and high freight likely to affect Indiaâs agricultural exports 29 Dec, 2020, 08.03 PM IST Cheaper Indian rice saw much demand from Middle East during the pandemic due to problems in rice production of countries like Thailand and Vietnam and helped increase Indian rice exports during the ongoing fiscal. This site uses Akismet to reduce spam. The FMC is also being petitioned to suspend detention and demurrage fees â levied by carriers as a way to expedite the return of empty containers â for congestion and delays that shippers and truckers say are out of their control. ä¸è¼¸éã®åé¡ã¯å¤ç´ã ãã§ãªããä¸ççç©æµåé¡ã¸ã¨çºå±ãã¦ãããç¹ã«éè³ã®å®ãå¤ç´ã¯ãã¡æ©ãè¹ä¼ç¤¾ã®Bookingåä»å¯¾è±¡ããå¤ããããã®2ãæã§éè³ãæ°åãã²ã©ã㨠⦠The container shortage is not just affecting Asia ports, but also inland exporters in the US and in a number of European countries. Rates from China to Singapore up fourfold amid snarls in the US. I hope the emergencies end soon, and the freight markets resume with old might without causing further delay. Save my name, email, and website in this browser for the next time I comment. But this year traffic volume has remained at a high level in November. This content was commissioned by Nikkei's Global Business Bureau. "We have been forced to use old containers that were supposed to be disposed of under ordinary circumstances.". Why does container shortage happen? Despite still-surging demand, ocean carriers declined to introduce a mid-month rate increase on China- U.S. lanes. The freight marketplace is experiencing an unusual hitch â a shortage of shipping containers. As sales of furniture and appliances are rising, "it seems that retailers are building up their inventories to brace for a resurgence of COVID-19 cases," said Takuma Matsuda, professor at Takushoku University in Tokyo. Get trusted insights from experts within Asia itself. The consultants argue that the shortages are being driven by empty container repositioning issues rather than an inadequate global fleet. Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. As a hub, Singapore's shipping demand is growing, as shipments for Europe and the U.S. are increasing. Container Shortage and Vessel Delays Persist from China Ports September 29, 2020 Two typhoons in early September coupled with increased demand have caused container shortages and vessel delays of up to four days at main China load ports of Qingdao, Shanghai and Ningbo. Economy 09:52, 23-Dec-2020 Freight rates surge in Asia due to container shortage, halted delivery, and surging orders Updated 20:20, 23-Dec-2020 The cost to ship a 20-foot container from China to Europe also jumped 49.5% in a month to $1,644. Ocean freight. In 2020, Why does the serious "Container Shortage" problem happen? Maritime Regulators to Investigate Container Shortage Impact on U.S. As mentioned in our September article, COVID-19-Caused Capacity Cuts Could Become Permanent, before the pandemic, experts anticipated a positive growth rate in the container industry through 2024. He said spot rates are up to about $6,000 per container compared with the usual price of $1,200. Nico Hecker and Christian Halgmann from Hapag-Lloyd´s Container Steering department explain why now it is particularly important that everyone at Hapag-Lloyd works closely together. Shipping containers stacked on the dockside at the Port of Liverpool on December 10, 2020 | Christopher Furlong/Getty Images When the demand for goods rebounded more strongly than expected in the second half of 2020, the varying speeds of recovery across the world created a container shortage between China and the U.S., clogging one of the main TOKYO -- Container shipping rates from China to Southeast Asia are surging due to a shortage of transportation space in the Asian region, the result of an uneven distribution of containers to meet surging shipping demand from Asia to Europe and the U.S. Container shipping rates, including those for Europe and the U.S., are likely to remain at high levels, as it will take some time before the shortage is resolved. 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Carrier moves to rush backhaul empties has led to more turns to the U.S. Federal Maritime Commission (FMC) as well as to South Korean authorities to intervene. Container Shortage in Asia Expected to Intensify September 10, 2020 Container shortages in Asia, especially China and India, are worsening as dwell time in the US and Europe increase and carriers struggle to return enough empty containers. If you continue to use this site we will assume that you are happy with it. As containers ⦠Required fields are marked *. The container shortage problem is no secret and has been circling the market ever since the trading has begun after the Covid-19 lockdown has opened. Container Shortage Shows Chinaâs Export Dominance During Pandemic. Container shipping rates have remained relatively stable as it is a route full of small container vessels. A surge in shipments to the U.S. has resulted in containership congestion in the U.S. gulf region, resulting in delays in unloading. Shipping containers on the dockside at the Port of Felixstowe Ltd. in Felixstowe, U.K., December 28, 2020. Your email address will not be published. If playback doesn't begin shortly, try restarting your device. Learn how your comment data is processed. October 20, 2020. KAZUTO SHIMADA, Nikkei staff writer November 28, 2020 12:24 JST TOKYO -- Container shipping rates from China to Southeast Asia are surging due to a shortage ⦠"I have never seen this much demand in mid-November," said a representative of a leading containership operator. As of mid-November, the cost to ship a 20-foot container from Shanghai to Singapore was around $802, up 370% from $170 a month ago, according to data released by the Shanghai Shipping Exchange. A positive trend of the Container Availability Index, with values of 0.34 for 20DCs and 0.37 for 40DCS, means the market is gaining strength. Copyright © 2021 by AspenCore, Inc. All Rights Reserved. 465 2 minutes read. Container shipping rates remain at record highs in all routes, but "many cargo owners want to ship their goods even at a premium on regular spot rates," said a representative of a containership operator. So far, it hasnât affected rates. The container shortage began in mid-2020 as the demand for goods grew in the wake of the first wave of shutdowns around the globe. The freight marketplace is experiencing an unusual hitch â a shortage of shipping containers. Even rates from the U.S. have gone up, though not quite as dramatically, according to Yeager. Will shipping bottlenecks help or hurt transportation providers. Sign up to our newsletters to get our best stories delivered straight to your inbox. The inactive empty container fleet is said to have dropped to around 430,000 TEU (1.8% of the world fleet) as of Oct 2020 compared to around 2.7 million TEUs May (11.6% of the world fleet) at the end of May 2020 at the height of the pandemic. Shipping Container Shortage Could Last Until Next Year, Boosting Container Leasing Stocks By McAlinden Research Partners November 16, 2020 No Comments While the shipping industry bounces back from the COVID crash, it now faces a sudden shortage of containers. Container shortage in Asia pushes up shipping costs, Marine container traffic is rising even amid the novel coronavirus pandemic, pushing up shipping rates. Container shortage: âIt´s currently an enormous unseen challengeâ Empty 40-foot-containers are currently in short supply â more than ever before. Trade between Asia and Europe is up almost 25% and lead operators say there is a shortage of steel containers. HOME   ABOUT   MEDIA KIT    EPS PURCHASING SURVEY   CONTACT US   SITE MAP   PRIVACY POLICY   TERMS OF SERVICE   CALIFORNIA DO NOT SELL  REGISTER   LOGIN. In Asia, delivery delays reach several weeks, forcing many companies to negotiate price increases with buyers. Peak volumes continue to surge, but China-U.S. ocean rates have stayed unchanged for two straight months, according to Freightos, likely due to pressure from Chinese regulators. The South Korean government has also taken steps to intervene, requesting that carriers add more capacity to its trade lanes where rates are climbing, and discouraging carriers from skipping port calls and allocating equipment to the more lucrative transpacific lanes. This week marks two months both since the last significant GRI and â not coincidentally â since Chinese regulators discouraged carriers from any further bumps on the already high rates. According to data compiled by U.S.-based trade database provider Descartes Datamyne, marine container shipments from Asia to the U.S. in October hit record highs, up 23.3% from the same period last year. The peak volumes of Chinese goods headed to the  U.S. since July has led to overwhelmed  U.S. ports and significant congestion and delays in returning empty containers to Asia. The sustained sky high prices from strong demand results from the acute shortage of empty containers at Chinese origins. From the beginning of 2020, coronavirus is raging around the world, and then from March and April 2020, many countries entered lockdown. After a bumpy 2020, an end to the equipment shortage is in sight. We use cookies to ensure that we give you the best experience on our website. Stay ahead with our exclusives on Asia; the most dynamic market in the world. The equipment shortage is also contributing to spiking rates on other lanes, as Asia-Mediterranean rates climbed 12 percent and Asia-Europe 8 percent, both to multi-year highs of more than $2,400/FEU. Since the beginning of 2020 and the outbreak of COVID-19, the global shortage of shipping containers has become a hot topic. Delays and container shortages are driving up prices.