What are the implications of container shortage for global trade and sustainability?

1 Causes of container shortage and imbalance

One of the main causes of the container shortage and imbalance is the uneven recovery of economic activity in different parts of the world after the pandemic. While some countries, such as China, have resumed their exports of manufactured goods, others, such as the US and Europe, have faced lockdowns and restrictions that have slowed down their imports and consumption. This has created a mismatch between the demand and supply of containers, as more containers are needed in the exporting countries than in the importing countries. Moreover, the pandemic has also disrupted the normal operations of ports, terminals, and logistics providers, resulting in delays, congestion, and inefficiencies in the movement and handling of containers.

2 Consequences of container shortage and imbalance

The container shortage and imbalance have serious consequences for global trade and sustainability. First, they increase the costs of international shipping, as carriers charge higher rates and fees to cover their expenses and risks. According to some estimates, the average cost of shipping a 40-foot container from Asia to Europe has risen by more than 300% since last year. Second, they reduce the reliability and predictability of international shipping, as shippers face longer transit times, uncertain schedules, and limited capacity. This affects their ability to meet their customers' expectations and deadlines, and may lead to lost sales, inventory shortages, or contract penalties. Third, they worsen the environmental impact of international shipping, as more empty containers have to be repositioned or stored, consuming more fuel, space, and resources.

3 Potential solutions for container shortage and imbalance

To address the container shortage and imbalance problem, various stakeholders in the international shipping industry have to work together and adopt some measures. For example, carriers can optimize their network design and routing, increase their container fleet size and utilization, and offer incentives for early return or reuse of containers. Shippers can diversify their sourcing and distribution strategies, adjust their order volumes and frequencies, and cooperate with other shippers to share containers or space. Ports and terminals can improve their infrastructure and equipment, streamline their processes and procedures, and coordinate with other ports and terminals to balance the flow of containers. Governments and regulators can facilitate the trade facilitation and customs clearance, provide financial and policy support, and promote the adoption of digital and green technologies.

4 Benefits of digital and green technologies

One of the ways to mitigate the container shortage and imbalance problem is to leverage digital and green technologies that can enhance the efficiency, transparency, and sustainability of international shipping. For example, digital platforms and applications can enable real-time tracking and tracing of containers, smart allocation and booking of space, and seamless data exchange and communication among different parties. Green technologies can reduce the carbon footprint and waste generation of containers, such as using renewable energy sources, biodegradable materials, or modular designs. By adopting digital and green technologies, international shipping can not only overcome the current challenges, but also prepare for the future opportunities and demands.

5 Tips for international shippers

If you are an international shipper who is affected by the container shortage and imbalance problem, here are some tips that can help you cope with the situation and optimize your shipping performance. First, plan ahead and book your shipments as early as possible, to secure your space and avoid peak seasons or surcharges. Second, communicate frequently and clearly with your carriers, suppliers, customers, and other partners, to update them on your shipping status and expectations, and to resolve any issues or disputes. Third, be flexible and adaptable, to explore alternative options or solutions that can meet your shipping needs and goals, such as using different modes, routes, or carriers. Fourth, monitor and analyze your shipping data and performance, to identify your strengths and weaknesses, and to improve your shipping efficiency and effectiveness.

6 Here’s what else to consider

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