As blood is to the human body, so are shipping containers to the world of trade. We all rely on the containers directly or indirectly. From medicinal products to food products, the world depends on shipping containers to move products from one country to the other or within the country. But lately, there has been a shortage of shipping containers worldwide – and this is turning into a crisis! People all over the world are complaining of delayed shipment of their products.

In the UK, for example, the global shortage of shipping containers has caused shipment delays for up to two months! The situation is dire and needs to be addressed immediately due to its ripple effect down the supply chain, leading to disruption of global trade. But why is there a global shortage of shipping containers, and how long will this shortage last? This post seeks to answer these questions and other queries you may have.

Why the shortage of shipping containers? 

While it may seem that the global shortage of shipping containers is due to inadequate containers, that’s not necessarily the case. The problem is that most containers are in the wrong areas. COVID-19 is mainly to blame for the disarray. When the virus was first reported in China in 2019, the country and some of its neighbours were forced into national lockdowns. In turn, most ports and manufacturing firms in these countries were closed. Cargo ships with goods from Asia dropped off containers in their respective countries, but they wouldn’t be shipped back due to COVID-19 restrictions. As a result, the containers piled up in inland deports and cargo ports.

Even with Asia’s recovery from the pandemic’s restrictions, other countries still remained under lockdown. With these restrictions in place, even the empty containers could not leave these countries for Asia. This made the situation dire and resulted in a backlog of empty containers. Similarly, increased online demand for goods during lockdowns, demand for personal protective equipment (PPEs), and other medical supplies are to blame for the global shortage of shipping containers. 

Shortage of shipping containers in the UK 

In the UK, the effect of container shortage has been adverse, mainly because of the problems caused by Brexit. Big companies like Hexstone say that they can’t ship products because of the deficit. In return, some of these companies lament increased losses because of the rising cost of hiring containers. John Tseng, the owner of J&B Clothing Company Ltd., says that he’s being charged $14,000 to ship a container to the UK instead of the usual $2,500. He fears that he might not be in the business for long if the prices won’t change.

How long until the global shortage of shipping containers is over?

Plans to end the global shortage of shipping containers are underway, with DFIC, CXIC, and CIMC reportedly producing more containers. And while this move won’t solve the disarray immediately, it will help ease the pressure in most ports. It is expected that with time, the issue of container shortage will sort itself. With the COVID-19 vaccine having been discovered and approved, most things will likely go back to normal, including the movement of shipping containers. However, no one is sure how long this could take.

Hold on. There is hope! 

While the global shortage of shipping containers may have affected your business or firm in one way or another, this may not last for long. As we steadily move out of the COVID-19 era, it’s very likely that trade will go back to normal – hopefully before the year ends.

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!