Quadrupled Shipping Costs Expected to Continue to Mid 2011
Currently shipping agencies are struggling with a shortage of over 2 million containers. Its not only caused by an in creased demand for sea transportation as other factors also come into play.
AMSTERDAM, the Netherlands – Currently shipping agencies are struggling with a shortage of over 2 million containers. It’s not only caused by an increased demand for sea transportation as other factors also come into play.
Widespread complaints on the quadrupled costs in sea freight are currently heard throughout the industry. As many importers have no clue whatsoever on the cause of the increased costs there has been already filed complaints in ‘Brussels’ on price fixing by the shipping agencies.
Dynamar shipping consultant Dirk De Visser recently stated that it is expected that the shortage will continue at least up to mid 2011. He said that at this moment annually 1 to 1.5 million new containers are being built in particular in China.
Shipping agencies have demolished lots of old containers since 2008 and failed to order new ones due to cut backs in spending. With increased trading as economies are recovering from the crisis, shipping agencies are struggling with a too low container capacity. The container handling in the port of Rotterdam in the first three months of 2010 was almost back at the record level of early 2008.
The container shortage is also caused by the fact that ships are sailing slower nowadays to save on fuel. This also cranks up demand for containers. In addition, there’s more export from Asia compared to Europe or the US causing for the fact that there are lots of empty containers in Europe which are much needed in Asia.