In the world of transportation, containers have long been a focal point, albeit not always in the public eye. However, recent extraordinary events have thrust these steel giants into the limelight, making them a topic of widespread discussion. From supply chain disruptions impacting various industries to the dramatic grounding of the Ever Given in the Suez Canal, the years 2020 and 2021 have brought containers to the forefront of global news.
The most significant current event in this realm is the unprecedented and enduring shortage of containers that is unfolding worldwide. As things stand, this shortage is poised to dominate conversations well into 2021 and possibly beyond.
The origins of this record-breaking shortage and subsequent surge in demand are intricate. A slight reduction in the 2020 container demand forecast at the close of 2019 indicated an impending slowdown. However, the onset of the global pandemic in early 2020 disrupted all supply chains, causing the world’s container fleet to deviate from its usual routes. Concurrently, China, a major manufacturing hub, enforced strict lockdown measures, bringing its manufacturing capacity, including container production, to a standstill.
Despite the initial drastic impact, the slowdown in supply and demand for containers was short-lived. China swiftly resumed manufacturing operations, and the global economy began to regain momentum. By mid-2020, several economies experienced a robust recovery, leading to a surge in demand for container shipping. However, the industry faced challenges due to the disruption in traditional patterns, causing inefficiencies. Recent reports from Bloomberg indicate that manufacturers have been struggling to catch up ever since.
Presently, demand for containers remains remarkably high, while manufacturing capacity is stretched to its limits. Lingering inefficiencies and imbalances have prolonged transport times, necessitating a larger number of containers within the global shipping system. Consequently, the supply of containers has become strained, resulting in a steep rise in freight rates. Many experts predict that the conditions conducive to a sustained container boom will persist throughout the remainder of the year, potentially extending into 2022.
Amidst these developments, FHSM Services remains steadfast in its focus on containers and our clients. We are poised to assist your business in navigating these challenges and thriving amidst the complexities of the container industry. Reach out to FHSM Services today to discuss your container requirements, and let us guide you toward a successful future.
