Tag Archives: container shipping

Carriers adopt ‘hardcore’ blank sailing strategy as export bookings plunge

It appears that many of the ships waiting offshore in Shanghai are not waiting to unload, but to get new cargo. shipments out of China seem to be plummeting.

It’s leading to blanked or rescheduled sailings.

Perhaps the avalanche of post-COVID goods for the US and the EU has stopped. Perhaps we have enough inventory here and in Europe. If so, we should soon see the queues of waiting ships at US ports drop to more normal levels, and the same with Europe.

It’s getting to look more likely that a recession might appear in the US, and I think the same will happen in Europe. the Ukraine instability is bound to cause consumers to cut back and try to spend less and save more. In both places, that is likely to induce a recessionary trend. Consumer spending is a major part of economic activity in these countries.

R$at3es for container shipping from Asia to the US and Europe are still high. How long will it take for them to plunge down?

By Mike Wackett 25/04/2022

Carriers adopt ‘hardcore’ blank sailing strategy as export bookings plunge – The Loadstar

US container prices tumble as yards overflow with empties

Suddenly there is a glut of empty containers. And prices for empty containers have fallen, in some cases by almost 50%. That’s because the containers are jammed up and not going back to China, due to Chinese COVID shutdowns and the Ukraine crisis.

Now the cost of a container in the US is below what it costs to buy a new one in China. I’m afraid it isn’t low enough for ocean carriers to be motivated to spend a voyage on relocating them. I think they will continue to build up in the US.

Gary Howard | Apr 19, 2022

US container prices tumble as yards overflow with empties

Vietnam steel giant Hoa Phat moves into container manufacturing

Others are discovering that they can dump steel by making it into containers. While the Vietnamese steelmaker Hoa Phat mentioned in the article won’t be a large percentage of the demand, it’s significant.

And since more goods are now being exported from Vietnam compared to before the Chinese lockdowns, supplying new containers on the spot may be a better option than moving them from the US and other places.

This means there will be a glut of containers in importing countries. The only option may be to scrap them when they arrive. Ocean carriers and shippers will prefer to buy new containers at the exporting site rather than shift the old empty ones back for more cargo, at present fuel prices and increasing pollution and crew charges.

It’s a real waste to scrap the containers if they are used only once. While steel is recyclable, it’s a torturous road, and we aren’t set up to do it at scale. And a tremendous waste of effort.

All are examples of exogenous charges, as the economists say. They are not factored into the original price of shipping the goods, so they aren’t paid by the shipper. They also aren’t paid by the carrier. They instead erode the general welfare of the communities who have to deal with the empties. It’s a classic scenario in sustainability.

By Martina Li in Taiwan 04/04/2022

Vietnam steel giant Hoa Phat moves into container manufacturing – The Loadstar