Container Shortage Worsens and Rates Continue Climbing

coracle News

Container shortages in Asia are creating a deficit of available equipment for importers, while rates continue to increase.

The surge of Asian imports to the US is partly due to the demands for PPE supplies and e-commerce goods created during the global pandemic. Even when trying to book 2-3 weeks in advance —up to 5 weeks in advance for a premium spot— shippers are still sometimes finding themselves shut out. [1]

Carriers have been offering premium services for premium pricing during the surge in demand created by the pandemic, but the worsening container shortage means they can no longer guarantee service, even while rates continue to climb.

The shortages in Asia mean shortages on this side of the Pacific too. In order to get the containers back to Asia as quickly as possible, shipping lines in Canada are sending the containers back to Asia empty, resulting in a deficit of equipment in Canada for the next Quarter.  General rate increases starting November 15th, 2020, are as high as USD$ 300/40’ westbound and USD$ 1,000/40′ eastbound.

[1] Asia container shortage worsens, even for premium services, Journal of Commerce