What is the cause of the shipping container shortage?
This is the question of the year in the shipping and container industries this year. Given the surge in shipping rates together with in the increase in the cost of steel containers (in some locations), it’s no mystery why this is a question on everyone’s mind.
When it comes to the shipping container shortage, it’s all about timing. In other words, it’s not a question that begins with “what” but rather “when?” and “where?”.
Let’s use the airline industry as a comparison to show the importance of timing.
Have you ever had a flight canceled due to weather when there were no weather issues in your departure or destination city? The reason this happens is because planes that are supposed to arrive from another city to bring you to your destination may be having weather delays. This messes up your travel plans no matter what the weather is like in your city.
As with the airline industry, the shipping industry is all about timing. A small delay or stoppage in one location can dramatically disrupt the logistical ballet occurring as shipping containers are sent around the world. The difference between the airline industry and the shipping industry is that shipping is even more complex.
There are countless variables that can affect the shipping container market. Here a just a few examples:
Variable That Impact Container Price
Oh!!!
Did I mention a global pandemic that reduced global trade to a standstill? That can have a teeny-tiny impact on prices and supply of shipping containers as well (sarcasm intended).
Here’s an example of a recent development that had a major impact on the shipping container storage.
Recently China put restrictions on energy consumption in their economy which caused a drop in manufacturing. Factories simply didn’t have the power to continue producing their products. This caused a reduction in exports out of China and a reduction in demand for shipping containers out of China.
Imagine the impact this had for shipping containers all over the world. There are many places that were used to receiving a certain number of containers per month that now are receiving much fewer. This has a massive ripple effect.
As I already mentioned, it’s all about timing. This type of change can screw up the entire coordination of shipping containers around the world. It’s the shipping business equivalent of a severe storm that cancels flights all over the country.
So … what’s causing the shortage in shipping containers? There is no one answer to this question. But there is one variable that affects everything:
TIMING!
But how does this affect you? Depending on where you’re located, containers could be piling up or in tight supply.
If you need a container, fill out the quote request with your zip code or give us a call to find out pricing for getting a shipping container delivered to you.