Shipping containers becomes new buzz word as coronavirus leaves industry struggling to meet demand
- Last year, rates on the busiest routes from China to the west and east coasts of the US ended 208 per cent and 110 per cent higher than in 2019
- China delivered 2.6 million 20-foot containers last year, with more than 70 per cent produced in the second of 2020 in a bid to meet demand
Until recently, it was not that common to use the word container within the shipping industry, with concerns more focused on the bigger picture of vessels and capacity.
The coronavirus and its impact on the global supply chains, though, has changed that, and amid surging demand and record freight rates, it is a trend that industry insiders expect to extend into the second half of the new year.
At the end of last year, rates on the busiest routes from China to the west and east coasts of the United States stood 208 per cent and 110 per cent higher than in 2019 per 40-foot container, according to the Baltic Exchange, a maritime industry and freight market information provider.
From the ocean carrier’s perspective, the quicker I can turn a container, back to where it’s required, the better velocity I get, the better return I get on my asset
The cost of container shipping from Asia to Europe also saw an unexpected surge at the end of last year, with rates from China to Northern Europe increasing by more than 60 per cent in December alone. The rate at the end of the year was even higher than the rate to the east coast of the US, which is traditionally 50 per cent more expensive.
