Container Shortage Begins to Impact Shipping

The freight marketplace is experiencing an unusual hitch – a shortage of shipping containers. So far, it hasn’t affected rates. Peak volumes continue to surge, but China-U.S. ocean rates have stayed unchanged for two straight months, according to Freightos, likely due to pressure from Chinese regulators.

The sustained sky high prices from strong demand results from the acute shortage of empty containers at Chinese origins. Carrier moves to rush backhaul empties has led to more turns to the U.S. Federal Maritime Commission (FMC) as well as to South Korean authorities to intervene.

The equipment shortage is also contributing to spiking rates on other lanes, as Asia-Mediterranean rates climbed 12 percent and Asia-Europe 8 percent, both to multi-year highs of more than $2,400/FEU.