Container xChange, the largest container trading platform, has new evidence illustrating the shipping container pile up and suggests the problem could possibly get even worse. The shipping container congestion is surging shipping costs for businesses and wait times for products. Freight companies are warning without intervention more containers will pile up and prices will skyrocket even higher. 

What is happening?

The pandemic and post-Brexit trade disruptions are both responsible for shipping container backup. The pandemic drove demand for shipping imports to levels that UK ports are not equipped to handle. Additionally, when the UK passed Brexit and exited the United Nations, the country renegotiated its trade agreements with other countries. These negotiations caused many temporary trade disruptions. These disruptions caused shipping containers to sit in UK ports. So, paired with the increased imports from the pandemic caused the massive backup we are currently experiencing. Other European countries around the world experienced increased imports due to the pandemic. However, most of them were able to handle the high levels of demand, perhaps because of the support from the European Union.

Two of the UK’s southern ports, Felixstowe and Southampton, are congested the most. These ports are so backed up that Container xChange is rerouting much of the shipping to other ports. However, many of these ports, such as Liverpool, are struggling to process the excess. Container Xchange tracks all of the inbound and outbound shipping containers into the UK’s ports. They developed an index (CAx) that details the balance of containers coming in and leaving. An index rating of .5 means that imports and exports are balanced. For 2020, both of the UK’s major ports averaged .95 and .80, indicating almost no containers were leaving. The averages for 2021 show that the problem is not only continuing but growing.

What will happen if the shipping containers keep piling up?

When these containers sit untouched in these ports and are not processed quickly enough, the price of shipping rises. Many companies experienced catastrophic shipping prices around Christmas in 2020. Businesses around the UK can’t hope to grow under the conditions of the current shipping market. Prices have declined since Christmas last year but are still too high for many business owners.

While shipping containers continue to pile up, other shipping sectors are beginning to thrive from the situation. Rail companies have seen an increase in rail freight in the UK over the last two years. Many of these ports are plugged into rail freight systems. So, they could utilise the system to get shipping containers into inland distribution centres. By offloading the increased imports inland, the ports could alleviate some of the congestion they are facing. The facilities already exist, and companies are seeking alternative freight opportunities, so utilising railroads could be the best option for both shipping institutions

Get in touch 



CS Containers are a family-based company in Kent. We have over 23 years of experience in the container and shipping industry and cover a range of shipping container requirements, including hiring, buying and selling. 

Are you thinking about buying a container or adding some accessories to an existing container? Get in touch with us today for a quote!