Equipment shortage in Asia is causing long delays for exporters, especially on US traders. Last month according to NJ Worldwide Logistics, the equipment shortage has spread to India, partly due to a drop in import volumes from China after trade restrictions were imposed by the government. The shortage is slowly reaching every corner of the globe, and now US and the Americas, are facing a shortage most in the inland container depots but also at the port-side locations.
The cargo volume from India and Asia to the US is extremely strong, as US importers look to replenish inventory depleted during the shutdown period in India and Asia , in response to COVID-19.
The shortage is bigger if the shippers have to plan their cargo from dry-ports to central areas. There will be waiting period to get bookings and containers for one or two more weeks on certain sectors and areas. Also shipments in large volumes like marble, rice and other commodities are also getting delayed.
Current ocean freight market is experiencing spiraling costs caused by shipping lines implementing increased surcharges, blank sailings and rolled cargo, for example, reefer rates to the US have increased 25-30% and might go a little bit higher for end of October and beginning of November as well.
We’re hoping that close to the end of this year and first quarter of next year things will be coming back to normal and shipments will start to flow again naturally. Until then hold down to your containers, rent them since prices have gone up lately, and get ready for a big purchase next year in the springtime.
