- China’s world-beating economic rebound from the coronavirus pandemic is being blunted by a global shortage of shipping containers.
- This has led to hike in cargo costs to record highs and hampering of manufacturers in filling fast-recovering global goods orders.
- On the other side of the world, Shipping companies are refusing to collect empty containers or exports after dropping off goods in the UK.
- This is because they do not want to miss slots at other ports such as Rotterdam, Antwerp or Hamburg.
- The action is making the logjams at ports such as Felixstowe and Southampton even worse, experts claim.
According to recent news articles in Reuters and Inews, there is a mounting container issue in China and the UK.
Exports from China surge
Exports from China surged 21% in November from a year ago as the country’s mammoth industrial engine cranked out mountains of appliances, toys, clothes, personal protective equipment and other items currently in high demand around the world.
Children in Europe may miss Christmas gifts
Following a report by i on Thursday revealing fears over children receiving their Christmas present on time, Derek Crookes, of the Toy Retailers Association, advised Christmas shoppers to go to shops “and try and get any products that they want as they may well run out”.
What is happening in China?
“We have so many orders but just cannot ship things,” said Charles Xu, a mirror salesman in the export manufacturing hub of Yiwu in Zhejiang province who supplies U.S. retailers such as Walmart and Home Depot.
“Boxes are piling up at our factory and we don’t have much space left. It’s just hard to book containers, and everyone is bidding for them with high prices,” he said.
This is just not only for mirrors but also for other products.
What is happening in Europe?
Ms Hadland said there had been a “massive upswing in imports” following the end of the first coronavirus lockdown due to pent-up demand and stockpiling by importers concerned about the impact of a second wave of the virus and the prospect of a no-deal Brexit.
Responding to the chaos at UK ports, the Department for Transport eased restrictions on drivers’ working hours in a bid to ease the backlog.
Container logjam and its impact
Rates to Europe have jumped 142% over the same period, and by 103% to the Mediterranean via the Suez Canal.
There are also fears for white goods, consumer electricals, food and building supplies running short because of the delays at ports.
Distorted trade flows
Distorted trade flows in and out of consumer markets which are importing more and exporting less than normal due to the pandemic have also led to a record build-up in containers outside China.
Stock piling containers
“Sometimes, carriers won’t book shipping space even when you’re paying them double,” said a freight forwarder at Ningbo-based Southwest Logistics Group.
Sensing a profit-making opportunity, some private Chinese firms have been stockpiling containers which are made available to the highest bidder.
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