{"id":1949,"date":"2021-07-02T03:28:42","date_gmt":"2021-07-02T03:28:42","guid":{"rendered":"https:\/\/hlshipping.com\/?p=1949"},"modified":"2021-07-02T03:30:53","modified_gmt":"2021-07-02T03:30:53","slug":"a-shipping-container-shortage-is-snarling-global-trade","status":"publish","type":"post","link":"https:\/\/hlshipping.com\/en\/a-shipping-container-shortage-is-snarling-global-trade\/","title":{"rendered":"A shipping container shortage is snarling global trade"},"content":{"rendered":"\n<p>Shipping <a href=\"https:\/\/hlshipping.com\/en\/container-rong-bot-khan-hiem-gia-cuoc-van-tai-quoc-te-van-neo-cao\/\">containers<\/a> are\u00a0the lifeblood of world trade: Virtually every product and part that circulates through the global economy travels across the seas, railroads, and highways ensconced in their corrugated metal embrace. But lately, those all-important containers are in short supply in the places where they\u2019re needed most.<\/p><div class=\"hlshi-noi-dung_2\" id=\"hlshi-4158115543\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3704539290800521\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-client=\"ca-pub-3704539290800521\" \ndata-ad-slot=\"5961295770\" \ndata-ad-layout=\"in-article\"\ndata-ad-format=\"fluid\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>\n\n\n\n<p>Indian exporters to North America and Europe are complaining that the wait times to find a shipping container can\u00a0stretch as long as three weeks. British exporters say the shortage has delayed shipments to east Asia\u00a0for up to two months. And in the meantime,\u00a0container prices have nearly doubled.<\/p>\n\n\n\n<p>The shortage of shipping containers is yet another symptom of the havoc the pandemic has wrought on international supply chains. As a result, freight costs are rising, which in turn leads to\u00a0higher prices for consumer goods. \u201cThis matters in the near term because the supply issues will have a direct impact on inflation,\u201d said Suresh Acharya, a professor at the University of Maryland\u2019s business school who studies supply chain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is there a shortage of shipping containers?<\/h2>\n\n\n\n<p>The problem isn\u2019t that there aren\u2019t enough shipping containers in the world; it\u2019s that the containers are in the wrong spots. \u201cThe story of the last 16 months is a growing container imbalance,\u201d said Harvard Business School professor Willy Shih. \u201cWhat you see is a messy buildup of containers in places where they\u2019re not supposed to be.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1-1024x576.jpg\" alt=\"\" class=\"wp-image-1951\" srcset=\"https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1-1024x576.jpg 1024w, https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1-300x169.jpg 300w, https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1-768x432.jpg 768w, https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1-1536x864.jpg 1536w, https:\/\/hlshipping.com\/wp-content\/uploads\/2021\/07\/2021-06-29T162216Z_1654614943_RC2GAO90DP6W_RTRMADP_3_GLOBAL-SHIPPING-HOLIDAY-e1625005990157-1.jpg 1900w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The pandemic is the main cause of their disarray. When the initial outbreak of Covid-19 forced China and many of its neighbors into national lockdowns at the end of 2019, the region\u2019s massive manufacturing sector shut down. Cargo ships that were already en route out of Asia dropped off hundreds of thousands of containers full of goods in ports across the Americas\u2014but because of pandemic restrictions, they couldn\u2019t load those containers back up with new products to send back to Asia. Instead, the containers piled up in ports and inland rail depots.<\/p>\n\n\n\n<p>By the end of 2020, trade came roaring back. Unable to spend their money on in-person services, consumers dumped their disposable income into buying manufactured goods. Global supply chains sputtered back to life. But now overwhelmed ports\u2014like\u00a0California\u2019s massive Los Angeles\/Long Beach port\u2014struggled to load and unload containers fast enough to keep up with the crush of ships waiting just offshore. Many ships, already running behind schedule because of congestion at the ports, decided to leave their empty containers behind rather than wait days to load them back onboard. As containers continued to pile up at major import centers, their supply dwindled at major export hubs.<\/p>\n\n\n\n<p>To make matters worse, in March a 20,000-container cargo ship called the Ever Given\u00a0lodged itself sideways in the Suez Canal. The six-day blockage further gummed up the circulation of containers and exacerbated the shortage. Brian Sondey\u2014the CEO of Triton, a company that buys shipping containers from manufacturers and leases them to shipping companies\u2014said on an April earnings call\u00a0that the canal blockage was \u201cthe icing on the cake\u201d of a terrible year for supply chains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Container production hits all-time highs<\/h2>\n\n\n\n<p>It seems unlikely that the industry will be able to end the shortage by simply making more containers.<\/p>\n\n\n\n<p>There are three Chinese manufacturers that\u00a0supply about 80% of the world\u2019s shipping containers: CIMC, DFIC, and CXIC. They\u2019ve already\u00a0boosted their production to record rates, but it\u2019s not enough to make much of a dent in the shortage. \u201cDespite the factories ramping up container production activity at the end of last year and beginning of this year, inventories of new containers remain very low,\u201d John O\u2019Callaghan, head of operations at Triton, said during the company\u2019s April earnings call.<\/p>\n\n\n\n<p>Some in the industry have accused container-makers of keeping supply low to drive up prices. \u201cThe Chinese manufacturers are controlling what production levels are and what container prices are,\u201d Tim Page, CEO of container leasing firm CAI,\u00a0told Freight Waves. \u201cAnd ultimately, if a shipping company has freight to move from China or someplace in Asia to Europe or the US and they need containers to do it and they don\u2019t have those containers, that\u2019s a recipe for rising container costs.\u201d<\/p>\n\n\n\n<p>The manufacturers\u2019 reluctance to ramp up production too much is rational, according to Acharya. \u201cWhile there is certainly a need for more containers now\u2026the post-pandemic steady state will look more like the pre-pandemic times,\u201d he said, \u201cso building more now may lead to a glut of containers later.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How long will the container shortage last?<\/h2>\n\n\n\n<p>Eventually, the shipping industry thinks the container shortage will sort itself out. \u201cIt is expected that the situation will improve, bottlenecks are expected to be relieved, buying patterns likely to normalize, as well as additional vessels and containers entering the market in 2021, means that the current vessel and container shortage is temporary in nature,\u201d Lars Mikael Jensen, an executive at the freight titan Maersk,\u00a0told Ship Technology.<\/p>\n\n\n\n<p>How long that will take is anyone\u2019s guess. Sondey, the Triton CEO predicted on the April earnings call that the shortage will drag into 2022: \u201cI haven\u2019t seen any of our customers express confidence that they can, within this current strong period, unbottleneck their operations\u2026I think the betting is probably [that the shortage will be resolved] sometime at the end of this year or early next year when maybe the trade world starts to get back to normal.\u201d<\/p>\n\n\n\n<p>But any prediction for how the shortage will end needs to be taken with a grain of salt, according to Shih, the Harvard professor. He points to recent unexpected events that have exacerbated trade headaches, like the Suez Canal blockage or the coronavirus outbreak that\u00a0forced China to close its massive Yantian Port. \u201cThis stuff keeps happening because there is not enough slack in the global supply chain,\u201d he said. \u201cI think [the shortage] will get better next year if more stuff doesn\u2019t happen\u2014but that hasn\u2019t been a good assumption lately.\u201d<\/p>\n\n\n\n<p class=\"has-text-align-right\">Follow <a href=\"https:\/\/qz.com\/author\/nriveroqz\/\" rel=\"nofollow\">Nicol\u00e1s Rivero<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>HL SHIPPING CO.,LTD<\/strong>&#8211; Right from the first day of establishment, until today. We have many years of operation in the field of Logistics. HL Shipping Co.,Ltd has become a reliable company, provide logistics and shipping agents for large domestic and foreign companies. Our best services are transporting the Super weight goods domestic and regional, logistics, road transport, rail and air transport at home and abroad.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>3rd Floor, Bao Minh Tower, 217 Nam Ky Khoi Nghia St, Ward 7, Dist 3, Ho Chi Minh City, Viet Nam<\/li><li>Phone: +84 28 39956117 &#8211; 22169288 &#8211; 22169388 &#8211; 22171588 &#8211; 22171688 &#8211; 22427988<\/li><li>FAX: +84 28 39956118 \/ 39954943<\/li><li>Email: <a href=\"mailto:info@hlshipping.com\">info@hlshipping.com<\/a><\/li><li>\u00a0Mon &#8211; Fri (8:00-18:00)\/ Sat (8:00-12:00)<\/li><\/ul>\n<div class=\"hlshi-sau-noi-dung\" id=\"hlshi-1261101721\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3704539290800521\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-client=\"ca-pub-3704539290800521\" \ndata-ad-slot=\"5961295770\" \ndata-ad-layout=\"in-article\"\ndata-ad-format=\"fluid\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Shipping containers are\u00a0the lifeblood of world trade: Virtually every product and part that circulates through the global economy travels across the seas, railroads, and highways ensconced in their corrugated metal embrace. But lately, those all-important containers are in short supply [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tin-tuc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.5 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A shipping container shortage is snarling global trade - HL Shipping<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hlshipping.com\/a-shipping-container-shortage-is-snarling-global-trade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A shipping container shortage is snarling global trade\" \/>\n<meta property=\"og:description\" content=\"Shipping containers are\u00a0the lifeblood of world trade: Virtually every product and part that circulates through the global economy travels across the seas, railroads, and highways ensconced in their corrugated metal embrace. 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