“We are now seeing the consequences of carrier cancellations several months ago that led to a shortage of empty containers in Asia... demand has turned around and the rebalance is a process that takes time; we cannot magically send the containers back to China,” Jensen told Fastmarkets on Thursday December 3.
A demand boom for consumer goods, an imbalance in trade flows to and from China, and competition between cargo holders have kickstarted a rapid increase in shipping costs
Rates for the China-Europe route have seen the biggest spike, with the price of a container close to $3,500-$4,000 including peak season surcharges, market participants told Fastmarkets. The Shanghai Containerized Freight Index
(SCFI) shows an increase of 20% week on week in this route.
The soaring costs, increasing logistics disruptions and cancellations have stirred export groups to call for tighter regulation. India is the latest country to outline...