Container shortage starts to bite, adding to pressure on costs

19.01.2024

The predicted container shortages are beginning to bite amid the chaos thrown up in the Red Sea and a flurry of re-routings, delays and cancellations.

And the shortages could catch the industry out, says global development director at CargoGulf Hans-Henrik Nielsen, despite predictions in past weeks.

Mr Nielsen told The Loadstar: «Most people read about it, perhaps even think ‘okay, it sounds like a problem, but probably not as big a deal as the carriers make it sound’.»

However, Mr Nielsen warned that, despite being a «small» player, specialising on the Asia-Europe and Asia-Gulf trades, CargoGulf was now seeing the problems.

«It is getting increasingly difficult to get 40ft high-cube boxes, and also 20ft general purpose boxes, across the main ports in China,» he said. «We are empty-repositioning as fast as we can, and we have also taken on the very last batches of new-lease containers, but from today, there are no more ... there are ‘out of stock’ signs on the doors of leasing companies.»

Crane Worldwide’s Mark Rhodes, regional ocean product director Asia Pacific highlighted similar concerns. he said: «The outbound leg from Asia to Europe is just the beginning of what could be more turbulent times ahead in 2024.»

Other forwarders are seeing similar issues, one telling The Loadstar crises like that in the Red Sea compound structural inefficiencies surrounding the repositioning of empties.

Another added that he was beginning to see issues with export boxes at North China feeder ports — «nothing major» yet, but the forwarder added it was indicative of a pending equipment shortage.

And Mr Nielsen warned that «someone has to pay» for the higher costs, «from China especially» that will begin to «land on everybody’s doorstep».

Analytics on topic
Article
29.11.2023
Shipping Industry Trends in 2023

The shipping industry in 2023 is characterized by cautious consumer spending and sluggish container demand growth, coupled with the looming risks of oversupply

Source: Container-xchange.com
Article
31.05.2024
Ocean freight market. May 2024

The study analyzes the sea freight market by the end of April — beginning of May 2021. It reveals the problems associated with the movement of goods in various regions of the world, highlights the latest developments in the industry and gives a forecast for the next month