But this year traffic volume has remained at a high level in November. The CAx for 40-foot high containers in Shanghai is just 0.07, well down from 0.69 the same period last year. “When we don't succeed in meeting evacuation demand, we are chartering extra ships to get the empty containers to their destination. November 27, 2020 Hannah Marshallsay. As a hub, Singapore’s shipping demand is growing, as shipments for Europe and the U.S. are increasing. Transpacific rates began rising in Q2 2020 and hit a 10-year high in September, but due to lower backhaul volumes, empty containers were slow to return to […] A similar space shortage happened in 2018 but 2020 is turning out to be much worse for US importers. Download Excel file with the above chart(s). The supply of freight containers, that currently are incapable of meeting the huge demand around the world, are driving logistics and freight costs for European and American companies through the roof. These strategies, and their resultant impact on empty container availability in Asia are outlined in figure 1. 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. , This email address is being protected from spambots. +91 8304011974 The cost to ship a 20-foot container from China to Europe also jumped 49.5% in a month to $1,644. From the beginning of 2020, coronavirus is raging around the world, and then from March and April 2020, many countries entered lockdown. Carriers have informed the shipping industry that container space on ships is sold out through the month of November. In addition, shippers need to pay around $1,000-1,500/container to guarantee vessel space, putting effective container rates at around $7,000/container. Freight rates surge in Asia due to container shortage, halted delivery, and surging orders. “We have been forced to use old containers that were supposed to be disposed of under ordinary circumstances.”. Space is sold out even though capacity is up 20% year-on-year. var path = 'hr' + 'ef' + '='; This email address is being protected from spambots. September 10, 2020. A consumer shift away from services to goods, caused by the restrictions imposed by governments to control the coronavirus pandemic, has made it harder for firms to get hold of the containers they need to move stuff around … The recent worsening in the global shortage of container equipment is causing even greater problems for shipments from Asia and the Indian Sub Continent to the UK and Europe. There is a growing shortage of container equipment in the Asian hubs of Shanghai, Singapore, and Port Kelang. document.getElementById('cloakefbfa13220f0c57c9a790c329ec592b6').innerHTML = ''; We then modelled for 4 different strategies available to the carriers, to potentially resolve the empty container shortage: (1) do nothing about the container shortages; (2) aggressively reposition empty containers on the export legs into Asia; (3) injection of newbuild containers to ease the burden; and (4) carriers aggressively reposition containers AND have an injection of container newbuilds. You need JavaScript enabled to view it. 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. This also means that the question with the highest priority for everyone in the industry is: when will the equipment shortage be resolved? Container Logistics and Slot Control Team in all Regions are working closely together to make sure no slot remains unused. The non-availability of containers in Asia is becoming a major problem for the sea freight. And it is not just Shanghai Port. 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. Compounding on the shift in trade imbalances and bottlenecks is that production of new containers is woefully low. Acute shortage of containers in Asia could run beyond February: Sea-Intelligence Container shipping consultancy Sea-Intelligence has warned that the dire shortage of empty containers in key locations, especially in Asia, could persist into at least February, and possibly beyond. In Asia, delivery delays reach several weeks, forcing many companies to negotiate price increases with buyers. 2020/11/19 HOUSTON (ICIS)--Efforts to stop the spread of the coronavirus (Covid-19) across the globe have disrupted normal trade patterns, causing delays and contributing to higher freight rates from Asia, largely because of a shortage of shipping containers in major export ports. Amanda Callahan September 29, 2020 General, News, Ocean Freight, Shipping From China Leave a Comment. In issue 492 of the Sea-Intelligence Sunday Spotlight, we attempted to answer this question, by modelling the overall state of the market based on high-level regional data. 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. var prefix = 'ma' + 'il' + 'to'; Container shortage in Asia pushes up shipping costs November 30, 2020 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. Using estimates of the global container pool and global volume shipments, we established the baseline for the time a container takes to be loaded in Asia, before it completes its journey, and is once again loaded in Asia. The market is thus faced with a stark choice – either the carriers pursue the current strategy, and there is the possibility of resolving the container shortage during January, or the carriers reduce their aggressive repositioning strategy in order to serve back-haul shippers, but then the consequence is that the empty shortage problem will persist into at least February, and possibly beyond. We then augmented this with Container Trade Statistics (CTS) demand data, and the potential buffer stock of empty containers in Asia, to model the empty container availability in Asia. The only scenario in which there is a prospect of resolving the problem in January is the one where carriers both procure new containers, as well as reposition aggressively. Intra-Asia container rates surge on box, vessel crunch Keith Wallis, Special Correspondent | Nov 02, 2020 12:05PM EST. var path = 'hr' + 'ef' + '='; document.getElementById('cloak296490480f8be42bb2ef10b8e6752ef6').innerHTML = ''; 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. “India Seatrade News” delivers most relevant, India-focussed expert news coverage on the shipping, ports and logistics sector – carefully picked from well known media outlets. 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 rate was already down in 2019 and dropped even further this year, especially when demand fell dramatically in Q1 2020. The box availability data from Container xChange (an online platform) … Shipping containers on the dockside at the Port of Felixstowe Ltd. in Felixstowe, U.K., December 28, 2020. You need JavaScript enabled to view it. The demand for empty containers and surge in freight rates are also impacting other trade lanes like Asia-North Europe where the rates have gone up by 8% to $2,443/FEU as shown in FBX which is almost 50% higher compared to the same period in 2019. Compared to December 2020, container availability is up 58 percent in Singapore and 54 percent in Port Klang across standard container types in January 2021. "An index of 0.5 describes a balanced market, below 0.5 a shortage of containers," said Dr Johannes Schlingmeier, CEO of Container xChange. Empty container shortages in Asia to persist into January . Equipment shortages to persist into January. However, this strategy causes significant problems for back-haul shippers. Container shipping rates have remained relatively stable as it is a route full of small container vessels. The surge in imports is unprecedented. When they entered lockdown, their economic activities were restricted, which also affected the … The pandemic and uneven global … Equipment shortages coincide with a recovery in regional economies and the shift of production to other regional countries due to the China-US trade spat. addyefbfa13220f0c57c9a790c329ec592b6 = addyefbfa13220f0c57c9a790c329ec592b6 + 'sea-intelligence' + '.' + 'com'; The absolute largest problem in container shipping right now, is the dire shortage of empty containers in key locations, especially in Asia. in International Shipping News 25/12/2020. The FMC has received complaints that carriers are purposely refusing to ship U.S. exports in favor of the quicker turnaround of empty containers … You need JavaScript enabled to view it. 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. Shipping lines have therefore reduced the number of their ships, so as not to travel almost empty. A shortage of empty shipping containers in Asia and bottlenecks at the UK's deep sea ports are behind the problems. The main cause of this shortage is the coronavirus, which resulted in a series of events. 16 December 2020; Press Room; PRESS RELEASE: Equipment shortages to persist into January. Asia to US Container Space is Sold Out. November 2, 2020. var addyefbfa13220f0c57c9a790c329ec592b6 = 'am' + '@'; The absolute largest problem in container shipping right now, is the dire shortage of empty containers in key locations, especially in Asia. Wan Hai Lines is doubling freight rates on all containers that the Taiwanese carrier ships from China’s Shenzhen port to Southeast Asia, amid an intensifying shortage of boxes. The CAx for Qingdao Port, one of … 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. For more information, please contact: This email address is being protected from spambots. It was hoped the backlogs could … SINGAPORE — A critical shortage of containers is driving up shipping costs and delays for goods purchased from China. And this acute equipment shortage is leading to more scrutiny from regulators on multiple fronts. This is on the back of a very strong peak season that has seen demand soaring beyond expectations. The container shortage is not just affecting Asia ports, but also inland exporters in the US and in a number of European countries. Polymer importers said this week that spot container freight rates have risen to around $5,000-5,500/container. There is not enough transportation space from Shanghai to Southeast Asia as container vessels and air containers have been unable to return to Asia. But lockdown measures in other regions have contributed to delays in containers returning to Asia. 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. 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. var addy_text296490480f8be42bb2ef10b8e6752ef6 = 'ia' + '@' + 'sea-intelligence' + '.' + 'com';document.getElementById('cloak296490480f8be42bb2ef10b8e6752ef6').innerHTML += ''+addy_text296490480f8be42bb2ef10b8e6752ef6+'<\/a>'; The shortage of containers in Asia, which we reported in detail last month, has been ongoing, as has the continuation of port congestion across the U.K. and Northern Europe. 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. This is what is driving spot rate markets to historical highs, and it is what is causing significant grief to shippers looking to get their product moved in a timely fashion. All quotes can be attributed to: Alan Murphy, CEO, Sea-Intelligence. After a bumpy 2020, an end to the equipment shortage is in sight. var addy296490480f8be42bb2ef10b8e6752ef6 = 'ia' + '@'; --- 000 --- END OF PRESS RELEASE --- 000 ---. “I have never seen this much demand in mid-November,” said a representative of a leading containership operator. Demand surge intensifies container shortages in Asia. addy296490480f8be42bb2ef10b8e6752ef6 = addy296490480f8be42bb2ef10b8e6752ef6 + 'sea-intelligence' + '.' + 'com'; A reading below 0.5 indicates a shortage, and anything above 0.5 shows a surplus. Some container vessels have been sailing from Asia to Europe under-utilised in recent weeks due to an acute shortage of empty boxes. var prefix = 'ma' + 'il' + 'to'; A surge in shipments to the U.S. has resulted in containership congestion in the U.S. gulf region, resulting in delays in unloading. “30,000 TEU of empty containers are lifted towards Asia week-by-week, with a strong push for more” says Nico Hecker. [email protected], Powered by All rights reserved | Design by: WE design WEb, Container shortage in Asia pushes up shipping costs, Freight loading for 2020-21 surpassed level achieved last fi, Bengaluru airport opens India”s first dedicated expres, DP World returning to Indonesia with $1.2bn terminal in Gres, Grape export from Nashik to European nations drops by 33%, Indo-Bangla trade time through Petrapole land port extended, Corrugated box industry urges govt to cap exports of raw mat, ‘Seafood exports to China have seen a 40% decline during A, Adani Ports’ credit profile not affected by Gangavaram Por, AP Government lifts restrictions on concession agreement to. If playback doesn't begin shortly, try restarting your device. Container shortages and increasing rates add to shipper woes September 10, 2020 COSCO has reportedly stopped taking bookings out of Vietnam as demand for cargo spaces spirals upwards. The global supply chain is at risk at falling behind at a critical time, just before the upcoming peak shipping season. From breaking news, technological advances to shipping activities, India Seatrade News brings everything on to a single platform for you. Demand surge intensifies container shortages in Asia Greg Knowler, Senior Europe Editor | Sep 15, 2020 10:45AM EDT. To find out more about the India Seatrade portfolio, visit www.indiaseatrade.com, To Advertise: The corona pandemic and its global effects has resulted in a serious container shortage in China. This is exactly the strategy that carriers are currently pursuing. This includes news and updates on shipping markets, investments in ports and logistics infrastructure, coastal shipping, inland waterways and news from the government agencies. 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. Port congestion caused by chronic box shortages in Asia, Europe and US November 6, 2020 Some claim that the port congestion in the US and Europe is caused by the actions of the carriers earlier in the pandemic lockdown, which are having a knock-on effect. Activities in Asia were highly reduced from April to June. December 4, 2020. Active container demand in the U.S. is having implications for global container shipping costs. var addy_textefbfa13220f0c57c9a790c329ec592b6 = 'am@sea‑intelligence.com';document.getElementById('cloakefbfa13220f0c57c9a790c329ec592b6').innerHTML += ''+addy_textefbfa13220f0c57c9a790c329ec592b6+'<\/a>'; Empty container shortages in Asia to persist into January. The reason for container shortages is Covid-19. JOC Maritime News. Delays and container shortages are driving up prices. Marcus Hand | Dec 09, 2020 … The scrapping of containers now exceeds the building of new ones, causing inventories in factories to plummet. In 2020, Why does the serious "Container Shortage" problem happen?
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