Container Trade Statistics (CTS) data reveals a substantial increase in empty container movements, approximately around 20% compared to 2019 levels, indicative of growing trade imbalances.
While traditional metrics like TEU (twenty-foot equivalent unit) provide insights into market behavior, considering TEU*Miles, which factors in distance traveled, offers a more comprehensive understanding, particularly for full containers, says an article published on sea intelligence website.
Summary
- Empty container movements surged by approximately 20% compared to 2019 levels, indicating growing trade imbalances.
- Container Trade Statistics (CTS) data highlights this trend, suggesting a need for a nuanced approach in assessing container demand and associated costs.
- TEU*Miles analysis provides a comprehensive understanding, showing a 4.2% surge compared to 2019 levels, outpacing the 2.5% growth in global TEU volumes.
- Head-haul trades saw remarkable growth, with TEU growth reaching 7.8% in December 2023 compared to 2019, and TEU*Miles growth registering at 8.0%.
- The disproportionate growth in empty container movements compared to full containers poses challenges for shippers, with back-haul trades growing 2.5 times faster.
TEU Miles Analysis
Assessing empty movements via TEU Miles underscores a significant growth trend, mirroring TEU-based measurements. In comparison to 2019, global TEU volumes expanded by 2.5%, while TEU Miles surged by 4.2%. Head-haul trades witnessed a remarkable uptick, with TEU growth reaching 7.8% in December 2023 compared to 2019, and TEU Miles growth registering at 8.0%.
Implications For Costs And Shippers
The disproportionate growth in empty container movements compared to full containers underscores an emerging challenge for shippers. Back-haul trades have outpaced head-haul trades, growing 2.5 times faster. Consequently, the costs associated with moving head-haul containers have escalated, necessitating shippers to bear an increasing burden in covering the expenses related to empty container repositioning.
Conclusion
The surge in empty container movements, outpacing growth in full containers, signifies evolving trade dynamics and emphasizes the need for a nuanced approach in assessing container demand and associated costs. Shippers operating in head-haul trades face mounting challenges as they contend with rising expenses linked to empty container movements, prompting a reassessment of logistical strategies and cost management approaches going forward.
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Source: sea intelligence
