We already know that but it seems to be deeper than we even taught. Bloomberg is talking about a crisis of the shipping containers because of the high demand of the Chinese Goods. China basically is shipping goods to the US and other countries, and the return of the boxes is done empty because they are not waiting for other shippers to use their boxes to export or ship goods in them. Because of that, the shortage of shipping containers aggravated affecting also and raising the shipping costs, make it hard to export for the upcoming months.
We know the shortage is monitored and investigated by the WSC ( World Shipping Council ) that is keeping an eye on the market players, ports and shippers. Even so , the exports have been in jeopardy since June-July last year and the pandemic added a new twist, because of high demand of medical supplies, and work from home equipment ( laptops, computers, monitors, and other electronics ), all of these resulting in a shortage of boxes all over the world.
Since June 2020 a shipping container price doubled and in the mean time shipping cost went up four times, making it the most expensive shipping process in the past 10 years.
Spot freight rates by route – Source: Drewry World Container Index
The container shortage is felt by everyone across the globe, Japan said the freight rates and lack of boxes is affecting Southeast Asia and India. Europe complained as well. The US is also feeling the shortage badly , especially in the inland ports, where units are missing starting with mid October in some areas.
South Korean biggest shipping line also said that the shortage of boxes and shipping would continue in the first half of 2021, and that they deployed extra ships to the US routes to help South Korean companies to be able to ship their goods, and will focus on Europe later on.
Interesting fact is that the prices will not go down, and will keep raising hoping for a better summer break for everyone.
