Container shortage 'could last two years'
Six million new boxes needed
Equipment shortages could remain a feature of the container shipping landscape for up to two years, pushing shippers to use those supply chain providers still able to secure adequate capacity, according to one logistics major.
Claus Schensema, MD of GAC Forwarding & Shipping (Shanghai), told IFW equipment shortages were now so acute that rates had become a secondary concern for many shippers.
“In central and northern China, the bargaining tool is [now] equipment, not rates,” he added.
Alwyn Mendonca, MD of GAC Hong Kong, said the container shipping demand rebound had been so rapid that the entire industry had been caught off balance.
“No doubt, the fact that there are fewer boxes has helped some freight rates to double since the beginning of the year,” he told IFW.
“However, researchers suggest that 6 million new boxes are needed, and that’s equivalent to about two years of production.
“Hence, in spite of carriers now placing orders for new containers, there is very little hope that the current shortage is going to get better.”
Schensema said that larger forwarders like GAC were able to use their purchasing power with carriers to keep cargo flows open, despite the shortage.
“Clients have learned that forwarders with year-round commitments to carriers are now able to leverage the investment in “guanxi” – relationships – to ensure clients’ cargo is moved,” he said.
Claus Schensema, MD of GAC Forwarding & Shipping (Shanghai), told IFW equipment shortages were now so acute that rates had become a secondary concern for many shippers.
“In central and northern China, the bargaining tool is [now] equipment, not rates,” he added.
Alwyn Mendonca, MD of GAC Hong Kong, said the container shipping demand rebound had been so rapid that the entire industry had been caught off balance.
“No doubt, the fact that there are fewer boxes has helped some freight rates to double since the beginning of the year,” he told IFW.
“However, researchers suggest that 6 million new boxes are needed, and that’s equivalent to about two years of production.
“Hence, in spite of carriers now placing orders for new containers, there is very little hope that the current shortage is going to get better.”
Schensema said that larger forwarders like GAC were able to use their purchasing power with carriers to keep cargo flows open, despite the shortage.
“Clients have learned that forwarders with year-round commitments to carriers are now able to leverage the investment in “guanxi” – relationships – to ensure clients’ cargo is moved,” he said.
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