China: Domino of World Trade Developments Due to Container Shortages

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The problems faced by Chinese ports due to Covid 19 are great and cause a domino effect in world trade. Container availability in southern China ports is deteriorating. But the situation is getting worse day by day. Liners companies skip approaches.

According to the latest data, the ports of Yantian, Shekou and Nansha have been hit hardest by container shortages. “Far fewer empty ‘boxes’ are reaching back in southern China as companies bypass call-approaches and many charterers will face long delays or higher prices if they can not avoid the approaches to the specific ports ” , point out economic analysts. Maersk said it had canceled 64 scheduled calls to the two ports due to “delays of more than 16 days”. Yantian Port has seen a 19% drop in empty container imports over the past five weeks, Nansha Port has dropped 16% and Shekou Port has dropped more dramatically by 30%.

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The price of an empty container has soared in recent months. The cost of renting a container to bring products from Asia to Europe has reached record levels after exceeding $ 10,000. Exporters and importers have reached their limits and the increase in costs will be passed on to consumption.

Container prices are rising because demand exceeds the availability of “boxes” that hold the lion’s share of world trade. The cost of the closure of the Suez Canal due to the Ever Given maritime accident and the congestion caused by the congested ports, which were delayed due to the Suez Canal, also contributed to the increase in costs.