- The word “unprecedented” has almost lost its meaning as a result of the COVID-19 pandemic.
- But yet, it is still the best way to describe conditions in the ocean container shipping industry.
- In the past year, we have seen a wild swing from a record-number of blank sailings in March 2020 to a post-peak season surge in volume.
A recent news article published in the Supply Chain Dive reveals that injecting more containers won’t solve supply chain woes. This is a contributed op-ed written by Daniel B. Maffei and Louis E. Sola, commissioners at the Federal Maritime Commission. Opinions are the authors’ own.
Overcoming the cargo hurdle
To support better cargo fluidity around the world, but particularly for U.S. exporters, all industry participants must work together. Every participant in the supply chain must collaborate to get through this challenging time, and, as regulators, we must also work with our counterparts across the globe to find solutions.
U.S. companies are facing limited access to containers and space on vessels to ship exports abroad.
Agriculture exporters, most notably those in America’s heartland, are struggling, paying high premiums that eliminate profit and the risks of loads not getting to customers on time.
Containers are stuck in depots
Although container supply generally kept up with container port handling in 2020, containers are not where they need to be.
Reporting shows containers are stuck in depots for more than 30% longer than usual, even in the places where they are needed most.
As a result, carriers are willing to ship empty containers back to China, to avoid the time it takes for the containers to be refilled with exports and the downtime for exports to be unloaded and the containers refilled upon their arrival in China.
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Source: Supply Chain Dive
