For the past few months, what could be called The “Container War” has been raging! The maritime container is originally a large metal box used to transport goods across the oceans! Like many raw materials, the shipping container is in global shortage… As a result, delivery times are getting longer and transport logistics costs are soaring… With the arrival of houses made from containers, the shortage could well last longer long months before a possible return to normal!
Lack of containers causing many shortages!
Have you ever wondered why toys were sometimes in short supply last year, or why electronic components no longer made it to our shores? ? The maritime container is the first link in the maritime transport chain… And if the most used 20-foot container runs out, then everything it can contain is also missing! An implacable logic that began at the beginning of 2020, with the health crisis that we experienced... China, the world's largest exporter, has been stopped, thus stopping maritime traffic... On the other hand, consumption of each country was very strong without being able to be satisfied by the deliveries… And the maritime containers, remained in dry dock and empty of any goods!
Why hasn't it resumed?
As shipping traffic gradually resumed, stalled containers were scattered around the world… Shipping companies did increase their transport capacity, but there is so much catching up to do that it is not enough. The explosion of e-commerce has had a major impact on this shortage as well! As all or most physical stores around the world were closed, consumers fell back on online commerce, which mostly requires container shipments. While everyone is rushing to e-commerce, China is accumulating goods to ship, but no longer has enough containers! Warehouses are overcrowded but delivery cannot be guaranteed fast enough! In concrete terms, there is not really a shortage of shipping containers... It is the explosion in demand that has created the lack of containers! The containers were scattered all over the world, but few are in China, and this is the major problem of this global crisis!
Will the situation improve?
According to some logisticians, it could take a few more months for the situation to improve... According to Nicolas Sépulchre de Condé, European director of the logistician In2log, 5 ″0% of the goods still cannot be shipped because there is no space on the boats”. 60 container ships are also waiting to be unloaded in the United States... And in Europe, only 35% of container ships arrive on time in Dunkirk, Le Havre or Marseille... Three years earlier in 2019, the figure punctuality was 85%! Each ship would be about 10 days late, and these delays are not managing to be absorbed because demand is not declining, on the contrary! This logistical problem would also have caused transport prices to explode... A 40-foot container cost $2,000 in 2019, today it costs $15,000! A phenomenal increase, which will inevitably affect consumers! Nicolas Sépulchre de Condé, takes the example of a sofa that cost 70 dollars to transport… Today, the same sofa for the same transport costs 500 dollars… And in your opinion, who will pay the difference? If sanitary conditions improve, the situation could also improve in 2022, but that was without counting on the Russian invasion of Ukraine, which could further penalize maritime transport... Let us remember that the theater of war is exactly on the way between Asia and Europe!
Partner ArticleMarch 18, 2022Last Updated: March 17, 20220 3 min read This sponsored article was written in partnership with a brand or sponsor.Your email address will not be published. Mandatory fields are marked with *
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