The shortage of containers in Asian origins is so pronounced that carriers are leaving export cargo on the quay, in favour of shipping empty containers back from Europe and the United States.
The container shortages are so acute, that some vessels are leaving Asia without full loads because there is not enough equipment to be found. Imports from China have been exceptionally strong since late June when the economy began to reopen from the first COVID-19 lockdown.
Carriers have been charging surcharges and promoting premium services during the continuing peak season, to guarantee equipment, but the increasing inability of carriers to position equipment negates the purpose of the surcharge.
Our commercial team work closely with our group offices at origin to secure bookings, locate equipment and ensure the container is loaded onto the ship on schedule.
To try and maximise the revenue opportunity from Asia, carriers are doing everything they can to return empty containers in the fastest possible time. Different lines are adopting different methods, including reducing free storage, denying export bookings to quickly turn the empty containers, and repositioning empty containers to Asia from other trade lanes.
Carriers are no longer blanking trans-Pacific sailings to adjust capacity to demand because they need all the space they can get to exploit this extended peak season, but shippers complain that they reduced capacity too much, leading to record-high rates, has prompted the Federal Maritime Commission to monitor blank sailings, utilisation of equipment, and revenue trends.
The FMC’s latest move follows its decision to investigate whether carriers are in violation of its Shipping Act and detention fee investigation, amid reports that some carriers are threatening high charges for failure to return empty containers on time, even in cases where congestion has made it difficult or impossible.
Our trade association, BIFA said it was joining a call from The International Federation of Freight Forwarders Associations (FIATA) for governments to support the key considerations laid out by the FMC in its Final Rule on Demurrage and Detention, adopted in May following a six-year investigation.
We are working closely with partner shipping lines to overcome the challenging market conditions and secure the equipment we need. We would encourage and recommend that you provide us with your 2021 forecasts now, for fixed validity and consistency in pricing and budgetary needs.
