Is a new round of "shortage of boxes" coming? Asian ports reduced by 780000 TEUs
"The temporary shortage of containers in Asia will have a significant impact on the supply chain."
The impact of the Red Sea crisis on the supply chain is gradually expanding, and the latest news is that Asia may face a shortage of containers.
Based on the current situation, the Red Sea crisis is unlikely to be properly resolved in the short term, and vessel detours may become the norm for a period of time.
According to industry analysis firm Sea Intelligence, it is estimated that the shipping industry has reduced its effective capacity by 1.45-1.7 million TEUs due to its detour around the Cape of Good Hope, accounting for 5.1% to 6% of the global total capacity.
The direct impact of this is the extension of shipping schedules, vessel delays, and restricted circulation of empty containers. Especially with the upcoming peak of shipments before the Chinese Lunar New Year, the demand for empty containers in the Asian market is increasing.
It is reported that some shipping companies have requested to transfer as many containers as possible from Europe and the United States back to Asia in the following voyages.
Analysis firm Vespucci Maritime stated that in recent times, approximately 390000 TEU of containers have been transported back to the Far East region per week, both fully loaded and unloaded, from Europe and the East Coast of the United States. This means that before the Chinese Lunar New Year, the number of containers arriving at Asian ports will decrease by 780000 TEUs compared to before.
For possible shortage of containers, Vespucci Maritime believes that the temporary shortage of containers in Asia will have a significant impact on the supply chain.
Regarding this market change, a freight forwarder said, "If there is a shortage of empty containers, there is no good solution. Boxes are first come, first served."
It is understood that some shipping companies have placed orders with container factories, and their orders have been scheduled until March 2024.