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Everything you need to know about container shortage and freight rise

Time:2021-08-19 Publisher:Kevin Num:4173

Today's ocean shipping industry can be said to be in a very serious situation. The shortage of containers、shortage of shipping spaces and the rise of freight rates have greatly reduced the income of shippers.

Before the outbreak, the ocean supply chain was still at a relatively stable level. 

The freight forwarder can cooperate well with the shipping company to transport the goods to the destination quickly and safely.

However, in the current environment, it is a luxury to find available containers and get space to transport goods.

Some people in the industry believe that this is mainly because the emergence of the epidemic has disrupted the original stable supply chain operation.

From the beginning of 2020, the whole world is shrouded in the fear of the epidemic. 

Many countries began to enter the state of city closure, which seriously hindered economic activities, especially the international transportation industry.

Affected by the epidemic, the number of staff in ports and warehouses has decreased significantly. 

This reduces the speed of customs clearance and loading and unloading of goods, and most containers have to be placed in ports.This phenomenon makes shipping companies have to make adjustments. 

Due to the serious impact on international transportation, the shipping company decided to reduce the number of ships in order to reduce the loss of profits. This is definitely bad news for the shipper.

Now we are ready to enter September, which is the beginning of Christmas activities in North America, which makes the import demand rise continuously.

A large number of goods are transported to North America, resulting in a large number of ships waiting in line at the port, resulting in port congestion.

To make matters worse, ports in North America do not have enough manpower and equipment to handle containers. 

Once the container is transported to the territory, it is difficult to return to the port for recycling.

Originally, the waiting time of the ship in the port was only one to two days. 

Now it takes nearly half a month to wait until the consignee comes to pick up the container. This drives up the freight.

On the other hand, containers are either placed in ports or on the sea. 

This makes the container supply unable to meet the demand for containers, which is obvious that manufacturers will raise the price of containers.

Generally speaking, the shortage of containers and the rise of freight are the main problems to be faced by the international transportation industry. 

They not only affect the operation of shipping companies, but also affect the interests of shippers and consignees.

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