Concerns Over Prolonged Container Shortage... Export Companies Growing Anxious

US Port Worker Shortage Disrupts Cargo Handling
North America-Bound Ships Wait Over a Week
Container Box New Orders on the Rise

[Asia Economy Reporter Dongwoo Lee] The shortage of container boxes for export products is showing signs of prolonged continuation. Delays in the normalization of major ports in the North American region due to the COVID-19 pandemic have raised concerns that ship congestion may continue throughout the first half of this year. The surge in import and export volumes following the global economic recovery, including in the United States, is also exacerbating the container box shortage. As a result, concerns persist that the burden on export companies due to increased shipping costs will continue for the time being.

According to foreign media such as TradeWinds on the 18th, as of the 14th (local time), the average time for ships traveling between Asia and the U.S. West Coast to complete their voyage and berth is 7.6 days. Although this is a slight decrease from the maximum of 9 days in early last month, it still means that ships must wait over a week in the waters off the port before unloading can begin.

During the same period, more than 30 container ships are anchored waiting to berth near the ports of Los Angeles (LA) and Long Beach on the U.S. West Coast, and about 15 ships are experiencing delays in unloading due to congestion at the Port of Savannah on the U.S. East Coast.

This situation is due to a reduction in port workers caused by the prolonged COVID-19 crisis, coupled with a surge in home delivery demand, which has increased difficulties in unloading operations. Last month, the number of COVID-19 confirmed cases among port workers at LA and Long Beach ports exceeded 850, reaching a record high. Although COVID-19 vaccines are being distributed to port workers this month, supply remains insufficient. Mario Cordero, Executive Director of the Port of Long Beach, stated, "Despite the shortage of manpower in the supply chain due to positive COVID-19 cases, we are making every effort to transport cargo."

As congestion at North American ports worsens, the prices for newly built container boxes continue to rise. As of last month, the new build price for the most commonly used 40-foot export container (FEU) was $6,300 to $6,500, and the 20-foot container (TEU) was $3,700, each increasing by an average of over $100 compared to the previous month, setting new records again.

The increase in container box prices affects maritime freight rates, ultimately leading to increased burdens on domestic shipping companies and export businesses. The strong demand from major consumer countries due to the global economic rebound and the intensifying container congestion, which drives container box price increases, are expected to continue throughout the first half of this year. The fact that China, the largest container box manufacturer, is controlling supply also supports this outlook.

Geonwoo Choi, a senior researcher at the Korea Maritime Institute's Shipping Big Data Research Center, said, "While the rise in freight rates due to increased cargo volume this year may be beneficial for the shipping industry, it can be a burden for export companies," adding, "The shortage of container boxes is likely to continue throughout the first half of the year, causing difficulties not only for small and medium-sized export companies but also for large corporations."

This content was produced with the assistance of AI translation services.