We remain amid a global shipping container shortage. To make matters worse, the rates for 40-foot shipping containers from China to the United States are at a staggering high of above $20,000 ahead of the U.S. peak shopping season.
Due to this and other factors, there is no end in sight to the strain on supply chains.
Key takeaways:
- With a tremendous number of products for the holidays originating in China, the rates for 40-foot shipping containers to the United States are at a staggering high.
- The acceleration of Covid-19 Delta-variant outbreaks in several countries has slowed container turnaround rates globally, causing backups and container shortages.
- Fully loaded cargo ships have been causing delays and blockages at U.S. ports, and empty shipping containers aren’t returning to China quickly enough.
- The shortages and increasing rates, in part, have led to an influx of online shipping container scams. Working with a reputable company has never been more important. Buyers should beware or risk losing thousands of dollars.
What Is Behind the Price Increases?
The acceleration of the Covid-19 Delta-variant outbreaks in several countries combined with typhoons off China’s southern coast in late July has contributed to the shipping crisis for everything from gym equipment to cars parts and electronics.
The global shipping container market faces an undersupplied seller’s market, and Chinese shipping companies are charging four to 10 times the average price to ship cargo.
Plus, full cargo ships have been causing delays and blockages at U.S. ports, while empty shipping containers aren’t making their way back to China quickly enough, further exacerbating the problem.
An event such as this has not occurred in global shipping for more than 30 years, and these rate hikes are expected to last until the Chinese New Year, Feb. 1, 2022.
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Container Rate Hikes
The price to ship a 40-foot shipping container on the China-U.S. East Coast route (one of the world’s busiest shipping lanes) has climbed to $20,000, more than 500% from a year ago. By comparison, the rate was about $11,000 in July.
The price increases are attributed to the rebound of Covid-19 cases in other countries, which slowed turnover at some major foreign ports for as long as a week or more.
Further, surging shipping-container rates have caused higher charter rates for container vessels, forcing shipping firms to prioritize service to the most lucrative routes.
Some shippers have begun reducing shipping volumes to less-profitable routes, such as the transatlantic and intra-Asia routes — meaning that rates for trade routes to the U.S. are increasing quickly.
No Respite from the Global Shipping Crisis
We know that the latest disruptions are just another impact that the 2020 Covid-19 pandemic has had on the global economy. The pandemic triggered huge changes in the flow of goods and healthcare equipment around the globe, resulting in rate increases across the board.
Further, a grounded container ship’s six-day Suez Canal blockage in March led to additional rate hikes.
There are new orders to shipping capacity, but they are not expected to come online until 2023, delaying an increase in the container supply for at least two years.
Can I Still Purchase or Rent a Shipping Container?
Absolutely! Although there is a shipping container shortage, A American Container has plenty of containers on-site in all grades and sizes. Unlike the sky-rocketing prices elsewhere, our reputable dealers are keeping costs as affordable as we can.
Keep your growing business running efficiently with shipping-container offices, job-site security solutions, inventory storage, and more. Lease or buy a 40-foot shipping container for all your business needs!
How can we help you think outside the box ®? Call our friendly customer team at (813) 740-1911 or get a quote today!
