The COVID-19 pandemic disrupted trade activities since its emergence. Thereby, now there is a surge in demand across Asia. This has led to container shortages and an increase in prices, as predict this situation will last for 4 months until to the year of 2021
Robust demand led to equipment shortages in many Asian ports. In turn, this led to the increase of container prices in the trans-pacific route. Usually, the prices fall back in October due to the demand slowing down. Conversely, the prices aren’t going down any time soon this year due to the shortage of containers in the continent.
Further, the unequal import-export ratio and the supply chain disruptions due to the pandemic is the primary reason for the increase in the prices. For example, Hapag Lloyd, one of the largest container carriers announced rate rises of $960 and $1,200 for its 20 foot and 40-foot containers from the 15th of October.
To optimize equipment supply, Hapag-Lloyd announced that the “assigned depots would only release empty containers eight days prior the estimated time of arrival (ETA) of the intended sailing.” Following this, many carriers have introduced restrictions on the release of empty containers before the shipment as well.
In all, the COVID-19 pandemic has disrupted the whole trade momentum of the world. By undertaking a few measures, the traders are trying to resolve the container shortage issue.
If you do have any questions and needs, Please feel free to contact your professional partner info@pfs-logistics.cn. thank you！
TEL