Box shortage pushes up rates on headhaul trades and starts to affect backhaul
Source
American Shipper
Post Date
11/12/2020
A combination of very strong cargo demand in Asia and an increasing shortage of 40¡¯ containers has seen rates for Chinese export rising sharply over the last few weeks, last Friday reaching its highest level since its launch in October 2009.
Getting empty 40¡¯ containers in China to take advantage of the lucrative rates on headhaul trades has become a top priority for the carriers. Carrying cargo at low rates on backhaul trades is obviously becoming less interesting as the inland transport and the stuffing and stripping of the boxes takes extra time.
The Speciality Soya and Grains Alliance (SSGA) has reported that Hapag-Lloyd decided to susp US agricultural exports for the foreseeable future. ¡°The export suspension is being driven by the need for ocean carriers to get their containers back to Asian manufacturing centers as quickly as possible to handle burgeoning, higher value imports to the US¡°, says the SSGA. ¡°Some carriers are apparently willing to s empty containers immediately back to China for faster turnaround¡±. While not directly commenting on the US Midwest export of soybeans, HapagLloyd has admitted in a communication to customers that the short supply of 40¡¯ boxes is ¡°an enormous unseen challenge¡±. The carrier had 600,000 teu of 40¡¯ containers empty on ground early July. This figure has come down to 350,000 teu, which is hardly covering two weeks of global exports volumes.
We have to decide which businesses we want to push primarily. Do we deliberately want to transport empty containers to speed up availability in Asia?¡± says Hapag-Lloyd. Obtaining empty containers from carriers for shipments on backhaul trades will be easier for exporters based in the immediate vicinity of ports, but it remains essentially an issue
