26 Jan Market Outlook: Shipping Container Crunch Shows Signs of Easing, Demand Remains High
Posted at 16:04h in Blog
Shipping Container Crunch Shows Signs of Easing, Index Shows
A global shortage of shipping containers that’s sent ocean freight rates skyrocketing shows signs of easing, according to an index that tracks the steel boxes used to transport 90% of the global trade in goods.
The Container Availability Index developed by Hamburg, Germany-based Container xChange should stay around 0.35 to 0.38 through Chinese Lunar New Year in mid-February, the online platform said in a statement on Monday. A reading of 0.5 reflects a balanced market, with anything below that mark indicating demand is outstripping supply. The levels had reached lows ranging from 0.06 to 0.13 in December depending on the size of container tracked.
Hapag-Lloyd believes that container demand will remain high for the next six months
Hapag-Lloyd believes that container demand will remain high for the next six months Container: Uffe Østergaard, president of Hapag-Lloyd America, describes 2020 in the container industry as hectic, surprising and challenging. He expects the demand will remain high for another half year.
Supply-Demand Imbalance Continues to Vex Air Cargo Shippers
The new year is off to a hot start for the air cargo market with no sign of cooling off. International transport activity typically softens following the holiday peak season, but demand and rates remain elevated because of unusual shipping patterns and a severe shortage of airlift triggered by the coronavirus pandemic.
And logistics companies don’t expect air cargo volumes to subside before the Chinese New Year because manufacturers plan to continue operating without a traditional break.