According to World Logistics China, at present, the shortage of containers in the Asian shipping market is particularly serious, resulting in the soaring price of second-hand containers, which is particularly serious in China.
Previously, container shipping companies cancelled the trans Pacific Trade voyage, and the goods imported from Asia to Europe also surged due to the easing of the blockade in July and August. These factors made it difficult for shipping companies to transport containers back to Asia, resulting in a sharp decline in the container availability of Asian ports, while some ports in the United States and Europe were facing the problems of increased residence time and port congestion.
At present, it is difficult for carriers to transport boxes back to loading ports in Asia. For example, Hapag Lloyd will now have to wait 8 days to retrieve empty containers from Chinese warehouses only before the voyage arrives.
In contrast, from October 1, for all Asian containers imported or exported through felixtor, CMA CGM will charge a port congestion charge of US $150 per TEU.
The container availability index (CAX) shows that a CAX value greater than 0.5 indicates excess equipment, and a value less than 0.5 indicates insufficient equipment.
Compared with CAx in Qingdao port, we will find that the availability of 20dc, 40dc and 40hc has decreased sharply since week 36. After 5 weeks of week 41, the price decreased from 0.7 to 0.35, from 0.68 to 0.59 for 40 DCS, and from 0.66 to 0.44 for 20 DCS.
From the container availability index, the availability of Qingdao port in China is mentioned, which has decreased from 0.7 in the 36th week to 0.35 now – less than 0.5 indicates container shortage.
On the other hand, containers piled up at the port of destination. The availability of 40 foot containers at the port of Los Angeles on September 11 was 0.57, compared with 0.11 in week 35.
The recovery of foreign trade demand was better than expected
Many analysts believe that the main driving force for the rebound in exports still comes from labor-intensive products. The overall export industry is gradually warming up, and the export industrial chain is expected to drive China’s economic recovery.
From the perspective of export products, the main driving force for the month on month recovery of exports in September still came from labor-intensive products, Christmas products and automatic processing equipment. The sharp rise in imports of non-ferrous metals, especially iron ore, is an important reason for the sharp rise in imports month on month.
Although the US west route is resuming flights, it still can not catch up with the pace of market demand expansion at this stage. There has been a shortage of containers in the market for several months, and some container manufacturers have accepted container orders in February 2021.
The proportion of the top ten transport capacity in the container transportation industry has increased from less than 60% a decade ago to 83%. The freight guarantee level after the peak season is expected to exceed expectations.
The recovery of foreign trade will also benefit the shipping industry. The container throughput of some major ports in August has narrowed significantly compared with last year, and the situation is expected to further improve in September.
The shortage of containers will not disappear in the short term
Due to market demand, the demand for electronic products and medical supplies (such as personal protective equipment) in the United States will continue until October and may even exceed November. For large retailers, operators now reduce the additional free time, usually 20 days or more, while keeping the free storage time of 3 days unchanged.
This is one of the reasons why the demand for containers in Asia has increased to a record level on xchange. If possible, finding containers for one-way use helps to improve flexibility, avoid demurrage and detention, and remain under control when a large surcharge is charged.
Users can still find containers from China to most ports in the United States, such as Houston, Auckland or Denver.
In view of the shortage of containers, Xiaoyun provides the following two solutions
01
Buy second-hand containers, but as the data of container xchange show, this has become an increasingly expensive proposal. The average price of containers produced by all ports in China from 2000 to 2005 was US $1744, and the peak price is much higher.
Container xchange said, “compared with the average level, the price increased by 115% in the 28th week, 90% in the 32nd week and 78% in the 35th week. We can see that due to the small container supply in Asia, the price demanded by the seller is higher.”
02
Used containers are much cheaper in European ports, but need to be relocated to Asia, which means they cannot solve the current availability problem or the additional cost of transporting containers back to Asia.
The average cost of containers produced between 2000 and 2005 was US $1262 in Rotterdam, US $1337 in Antwerp and US $1384 in Hamburg.
