As we already know, there is a worldwide shipping container shortage and the US is not an exception, being affected most likely in the inland ports as well as the coastal ones. Before, the rates were not affected, but recently prices began to rise almost every week. China’s low production rates of shipping containers, is contributing to the crisis because of the 6 months gap in the shipping container manufacturing industry. The sustained sky high prices from the strong demand results from the acute shortage of empty containers at Chinese origins.
Being hit by the first COVID wave, which created the perfect conditions to slow down the ocean container shipping industry especially to North America. The global production of non-essential items stopped, shipping capacity also went down. Once the lockdown was lifted, the demand increased, almost depleting the container stocks, while production of the shipping containers was still locked.
Usually the peak of shipping goes down by the middle of October, but with the actual environment, the recovery of the consumer demand, increases in manufacturing, and North America and Europe ramping back at the same time, the high rates and congestion persisted till mid November and might go on for a little longer. All shipping markets are still having trouble including China, India and Southeast Asia. Most of the container prices went up almost double since July. Both coasts are reporting delays in container shipments from Europe or Asia affecting the inland ports as well, since stocks are going down fast.
It doesn’t seem to be a clear end in sight, even so, predictions that the crisis might last till the first quarter of 2021, as demand to the US remains exceptionally strong, keeps affecting everybody’s plans for the upcoming quarter.
The key of getting through this period will depend on strong bonds and relationships, making sure that the factories, shippers and carriers will work together not only for their benefit. There will be delays in shipments, in deliveries of good in getting inventory in the inland ports as well as to the costal ports too. Let’s hope we see some understanding from end users as well as bigger companies that everyone is affected about the crisis and the delays. We have to learn to be patient and understand where the merchandise is coming from, why is being delayed and that carriers or smaller companies are not at fault during these delays.
