Home Business and Finance Demand For Chinese Manufactured Goods Creating Shipping Container Shortage

Demand For Chinese Manufactured Goods Creating Shipping Container Shortage

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Continually growing demand for Chinese exports has created a shortage of shipping containers worldwide.

Continually growing demand for Chinese exports has created a shortage of shipping containers worldwide.

The shortage, coupled with international freight costs have impeded the global logistics chain and the Chinese economy. 

Scrap Recycling Industries (ISRI) said its member companies are among exporting firms are having problems obtaining ocean shipping containers from ocean carriers over the last several months.

The high demand for medical goods like surgical masks as well as electronic goods including computers has been soaring for the past six months which further made the turnover of containers longer

“The soaring prices for China’s outward shipments due to a shortage of shipping capacity will weigh on China’s export growth, despite resilient external demand helped by the holiday season and factory lockdowns throughout Europe,” explained Serena Zhou, a fixed-income analyst at Mizuho Financial Group Inc. in Hong Kong.

Despite lack of equipment and space onboard vessels, carriers continued to accept bookings which resulted in major delays.

Drewry’s Container Equipment Forecaster said the global supply of ocean-borne containers is expected to have dropped by just over one percent in 2020 to end the year at 39.9 million TEU.