Online platform for sharing information & analysis on trade, shipping, ports and the maritime business more info. The positive container availability trend for Shanghai proves that actions taken by the shipping lines are working. You also have the option to opt-out of these cookies. There are four main reasons for this crisis. What’s 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. For Vietnam, shipping lines intend to maximized profits by reserve containers for long-haul routes to EU, NA as ocean freights comes upto 3 to five times that of in previous quarter. Shipping Container Shortage Update – November 2020 08.11.2020 - Posted by Ryan Herr Updated On 23.11.2020 Tweet It is easy to expect the current shipping container shortage to run into, at least, early next year as China's main factories are keeping production very low. Compared to December 2020, container availability is up 58% in Singapore, 35% in Nhava Sheva and 54% in Port Klang across standard container types in January 2021. The container will have a month of free time once it arrives in Asia. To grasp why the containers are where they are, it’s important to first understand the domino effect that has led to the present situation. These cookies do not store any personal information. For some of the major hubs across Asia like Singapore, Nhava Sheva and Port Klang the Container Availability Index shows the same trend. Competitor Triton agrees that shortage will prevail until after Chinese New Year 2021. Analyst firm Sea-Intelligence sees the container industry's problems with equipment shortages continuing into January. Among other things, Container Corp is moving containers to neighbouring countries such as Sri Lanka and Bangladesh to help ease the shortage. So far, it hasn’t affected rates. Update on shipping container shortage. U.S. importers already reported problems with ship ment delays in November. Container shortage: “It´s currently an enormous unseen challenge” Empty 40-foot-containers are currently in short supply – more than ever before. Necessary cookies are absolutely essential for the website to function properly. Chinese Officials Call for Cooperation to End Container Shortage Shanghai remains the world's busiest container port moving 53,5 million TEU in 2020 (file photo) Your email address will not be published. The sustained sky high prices from strong demand results from the acute shortage … Container shortage: “It´s currently an enormous unseen challenge” Empty 40-foot-containers are currently in short supply – more than ever before. No one knows how long the upheaval will last, though some experts assume containers will remain scarce through the end of the year, as the factories that make them — nearly all of … Ammo Shortage of 2021, Explained. “An index of 0.5 describes a balanced market, below 0.5 a shortage of containers”, according to Dr. Johannes Schlingmeier, CEO of Container xChange. Chinese New Year becomes the turning point for the shipping industry. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Both rail and ocean freight operators are facing this problem, which is predicted to last until next year. This website uses cookies to improve your experience while you navigate through the website. This shortage is not set to subside anytime soon since Chinese container producers, who control 90% of global production, are not set to deliver new orders to some key markets until next year. A positive trend of the Container Availability Index, with values of 0.34 for 20DCs and 0.37 for 40DCS, could make Chinese New Year the turning point. With the vast increase we’re seeing in the container availability, Shanghai is on its way back to normal levels. The reason for container shortages is Covid-19. 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.. Forecast: Positive trend to continue in February. A positive trend of the Container Availability Index, with values of 0.34 for 20DCs and 0.37 for 40DCS, could make Chinese New Year the turning point. Asia , mainly China, is main sources for those comsumsing goods which have now been now moved in one way as priority. 1. The aggressive repositioning, which has grown by +125% in December on the online platform Container xChange, and the increased number of newly built containers contribute to normal availability levels again. This shipping container shortage is leading to skyrocketing shipping prices and major delays. Shortage of containers of emty returned is increased by additional issue of berth windows shortage in Caimep-Thivai ports to move empties to ICDs for customers pickup. 3 reasons the appliance shortage won't end Refrigerators, freezers, washers still in short supply A recent shortage of kitchen appliances -- including refrigerators -- still hasn't improved. In the previous six months, container rents also increased by about 50%. This suggests that the former has more than kept pace with the latter, it noted. The service provider’s weekly Container Availability Index for the Shanghai region fell to 0.05 for the week. Container detention rules: no solid pattern, Port of Long Beach had its busiest February on record, Uptick in blank sailings on Transatlantic, Strong points on the Asia to South America trade, Shanghai shows a positive container availability trend, UK ports suffering post-Brexit container logjams. So that is a month where the container can be tied up in addition to the two weeks of transit time, Fullbrook said. Global demand for Chinese goods has been so strong recently it’s creating a shortage of containers and driving up shipping costs, potentially impeding the nation’s exports in coming months. For Vietnam exporters, the volume of goods increased is a very good news; However , in the situation now, this also brings up some headache, especially the shortage of containers. Sign up to receive our weekly newsletter (each Thursday) with new shipping industry market reports, presentations & analysis. The shortage of equipment in Asia comes on top of rocketing spot rates on several trade lanes, especially from Asia to the US west coast, where after seven GRIs the current Shanghai Containerized Freight Index (SCFI) reading stands at an all-time record of $3,841 per 40ft, and looks set to break $4,000 before the month end. @Yanksfan70 Yes there is a shortage of chip ... October as the manufacturer doesn't want to pay $10.000 for 1 container. No End in Sight to China’s Chronic Container Shortage, Soaring Freight Rates, Insiders Say. Your email address will not be published. Friday, March 12th 2021, 9:05 AM CST. If a container is empty, though, that month of free time isn't a concern. What’s 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. The shortage of shipping containers that emerged last summer has extended all the way into the new year. Developed by Container xChange, the index tracks millions of container moves to monitor and forecast equipment availability. Ammo shortage not expected to end any time soon Retailers and industry experts say they don't know when the ammo shortage that started in 2020 will end. When they entered lockdown, their economic activities were restricted, which also affected the … At the beginning of 2020, it cost around $2,000 to ship a container from China to Europe. After a bumpy 2020, an end to the equipment shortage is in sight. Automakers fear container shortage to hit parts supply, output 24 Dec, 2020, 04.57 PM IST. Now, some companies are being quoted up to $14,000. Chinese Officials Call for Cooperation to End Container Shortage Shanghai remains the world's busiest container port moving 53,5 million TEU in 2020 (file photo) Required fields are marked *. 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. Copyright © 2019 Voltrans Logistics. The container shortage is not just affecting Asia ports, but also inland exporters in the US and in a number of European countries. The Chinese container manufacturers, which dominate the market, are now charging $2,500 for a new container, up from $1,600 last year. And if a carrier does provide a container to a U.S. agricultural exporter, it might make $300 from Los Angeles to Shanghai. End of container shortage relieves exporters Jul 9, 2020 Crops. Typically the company would only move the boxes to facilitate domestic shipments. This problem affects not only the logistics industry, but also manufacturers, trading companies and retail businesses. The cost of shipping goods from China to Europe has increased by up to 600 percent in recent weeks as the balance of trade routes is disrupted by the pandemic, resulting in a shortage of shipping containers. Container shortage: “It´s currently an enormous unseen challenge” in International Shipping News 23/11/2020 Empty 40-foot-containers are currently in short supply – more than ever before. So far, it hasn’t affected rates. In the end, he was able to get what he needed, but there were higher shipping costs to get it on time. For Vietnam exporters, the volume of goods increased is a very good news; However , in the situation now, this also brings up some headache, especially the shortage of containers. @Yanksfan70 Yes there is a shortage of chip ... October as the manufacturer doesn't want to pay $10.000 for 1 container. As a side effect, pickup charges for one-way containers skyrocketed to $1850, and prices for used containers climbed up to $2493 for 20DCs across China, according to Container xChange. For instance, while it normally costs $1,420 to ship a 20-foot container to the U.K., it rose to $5,420 in November and $7,200 in December. The largest container shortage is in Asia, but Europe also faces a deficit. In the previous six months, container rental rates have grown by about 50 percent as well. Chinese New Year – End to Equipment Shortage in Sight After a bumpy 2020, an end to the equipment shortage is in sight. Average index values of 0.19 for 40DCs and 0.38 for 40HCs show that Shanghai used to be a deficit location even before COVID-19. A minus of 75% and 83% compared to equipment levels in the first quarter of 2020. Save my name, email, and website in this browser for the next time I comment. Lars Jensen, CEO of Sea Intelligence, said that capacity on the Asia to US West Coast is up 20% […] Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world's fifth biggest auto market. "An index of 0.5 describes a balanced market, below 0.5 a shortage of containers," said Dr Johannes Schlingmeier, CEO of Container xChange. The shortage of containers has also pushed up the price of new containers. Experts claim the end to the exceptional container equipment shortage -experienced in recent months- could be in sight. Author: Heather Crawford "This shortage is going to be impacting us in a huge way, because we can't put our fruit into frozen containers or the general freight containers," he said. The freight costs are going up, it's harder to book space on vessels, and the price of goods increases as well. For Shanghai, a city traditionally known for a deficit of containers, the index reached record lows in December 2020 of 0.13 for 40DCs and to an even lower 0.08 for 40HCs. EVERY THURSDAY! Demand for Chinese Goods Is So Strong There’s a Container Shortage Bloomberg News January 7, 2021, 4:17 AM EST Updated on January 7, 2021, 9:59 PM EST Even unconventional measures need to be considered. © 2020 GlobalMaritimeHub | All Rights Reserved. But opting out of some of these cookies may affect your browsing experience. After a bumpy 2020, an end to the equipment shortage is in sight. “With a growth of 37.5% for 40HCs and even 200% for 40DCs in January compared to December 2020, the Container Availability Index finally shows a positive trend for shippers and forwarders who are looking for equipment in Shanghai”, says David Amezquita, Head of Data Insights at Container xChange. Mainly as a consequence of unexpected demand for containerized goods created in the wake of global social lockdowns. The coronavirus has “put some stress on the supply chain,” he said. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The container will have a month of free time once it arrives in Asia. The driver shortage caused by the coronavirus affected container turnaround time back to port. Containers that were expected to return empty in one or two days under normal conditions could not be returned for weeks. Qingdao, for instance, even reaches index values of 0.5 for standard equipment – which represents a balanced equipment situation. This issue is a big headache to exporters, then link to truckers or even shipping lines to manage properly. Most shipping lines have hiked freight by 2-10 times in the last two months, depending on the sector. A positive trend of the Container Availability Index, with values of 0.34 for 20DCs and 0.37 for 40DCS, could make Chinese New Year the turning point. For instance, while it normally costs $1,420 to ship a 20-foot container to the U.K., it rose to $5,420 in November and $7,200 in December. Soaring Asia to US rates are expected to climb higher next week as vessel operators impose yet another general rate increase (GRI) on 15 September with container shortages compounding shippers’ difficulties even as capacity has increased. We also use third-party cookies that help us analyze and understand how you use this website. We have an update on the container shortage issue. Customers have to pay more few times of freight to get containers to ship but not always success. However, stock prices of container leasing firms are set to continue an ongoing 2020 boom. Gun owners across America are asking when ammunition will be available again. Shortage of shipping containers at Shanghai port leaves exporters scrambling to meet ... the problems do not end here for exporters. Container lessor Textainer does not see a return to a balance in the supply and demand of boxes before mid-February next year, the company tells ShippingWatch. 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. It is mandatory to procure user consent prior to running these cookies on your website. Ocean shipping analysts expect the equipment shortages that plagued shippers in 2020 to end at some point in 2021, though there are differing opinions on when the market will normalize and containers will become easier to acquire. Solving the issue requires action from the container shipping lines, says the analyst firm. “When will this headache end?” is an open end answer, when vaccines are developed and not fully supplied, governments in some countries have not fully controlled the spread of the pandemic. Let’s start at the beginning. How bad the situation was, can be seen in the Container Availability Index (CAx). 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. LONDON — A global shortage of shipping containers is driving a surge in import and export costs that is hitting businesses and threatens to dip into customers' pockets. The main reasons are demands due to Covid-19 and recent effective FTAs to release taxes to Vietnam products. Some container vessels have been sailing from Asia to Europe under-utilised in recent weeks due to an acute shortage of empty boxes. Please enter your username or email address to reset your password. Rates continue to climb for seabound freight and, despite manufacturers of 40 and 20-foot containers ramping up their output, most capacity is booked through the end of the first quarter. Now, Chinese container manufacturers, who dominate the market, are pricing new containers at US $2,500, up from US $1,600 last year. Bourgault offers new precision drills Jul 9, 2020 Crops. Container monitoring specialist Container xChange has mentioned a… Brazilian coffee sellers have been struggling to secure forward bookings due to the shortage as many containers leaving to China aren’t returning. All major shipping lines are experiencing equipment shortages at Asia ports with popular 40 high cube containers in particular short supply at Chinese depots. Aboves main reasons cause shortage of containers dues to containers are piled up at EU, NA ports and customers’ warehouses. Coronavirus conundrum: Containers still in short supply 24.02.2021 Demand for freight container transport has been soaring for about six months — despite or because of the pandemic. All rights reserved. 4/2, D2 Str, Ward 25, Binh Thanh Dist, Ho Chi Minh City, Viet Nam, How to Calculate Import Tax and Duty in Vietnam, Vietnam wooden export products heading to bright future. When container shortage, headache to exporters, will end? There have been more demand of necesities from consumers not only for daily usage but also reservation as pandemic end is unknown yet. Understanding The Shipping Container Shortage and Prices in 2021 Due to COVID related supply and production delays, there is a global shortage of shipping containers. We are doing our damndest to meet the demand!” He added, “We know, ammo seems hard to come by right now. And then, the border conflict with India resulted into restrictions on importing products from China. And due to the aggressive repositioning of empties back to China by the shipping lines, Chinese New Year stands to become the turning point of equipment shortage. Chinese New Year – End to Equipment Shortage in Sight. The freight marketplace is experiencing an unusual hitch – a shortage of shipping containers. The service provider’s weekly Container Availability Index for the Shanghai region fell to 0.05 for the week. The main reasons are demands due to Covid-19 and recent effective FTAs to release taxes to Vietnam products. We all know that the Covid-19 pandemic has affected to many countries around the world, in which EU and North America (NA) mostly serious. He said that adds a cost of up to £2,000 per container, and takes an extra seven to ten days to reach the delivery point in the UK. As we have reported, exporters in China are paying a premium for empty containers, which take up space for other U.S. goods needing to be shipped to Asia. Due to the imbalance between China and Europe trade, a large number of containers is stranded in the European ports and terminals. Chinese container factories now work at full production. The COVID-19 […] This is because when countries were going into lockdown China started opening up and containers had to go nowhere to go but to end up in China. So, what are the reasons for the shortage of containers that the shipping industry is currently experiencing? Average container turnaround times have ballooned to 100 days from 60 days previously because of COVID-19-related handling capacity cuts in Europe and the United States, according to the China Container Industry Association (CCIA), and that has exacerbated the shortage. This causes many people work from home or even job less. Pandemic wave creates North American bottleneck. Container Shortage is Easing with Chinese New Year as Turning Point Shanghai is among the ports showing an improvement in container availability By The Maritime Executive 01-26-2021 05:41:39 The situation is even worse as many reserved bookings made double or triple to crease virtual shortage situation. This category only includes cookies that ensures basic functionalities and security features of the website. From the beginning of 2020, coronavirus is raging around the world, and then from March and April 2020, many countries entered lockdown. Container xChange – January 25, 2021 | For months, containers were extremely scarce across China, and prices have skyrocketed to record highs. While the problem relating to container shortage should ease by mid-2021 with the balancing of trade, the larger issue of support to exporters needs to be addressed. It has received numerous complaints about inflated prices due to a shortage of containers and ships. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 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.