Shortage of shipping containers

As reported in the Wall Street Journal, there has been a sustained surge in U.S. exports across a broad range of goods. This has caused a severe shortage of shipping containers and other transportation equipment, along with a lack of space on outgoing ships. Cargo-ship operators are raising prices almost daily and U.S. exporters often have to wait for the 20ft and 40ft containers.

What is behind the problem? Soaring U.S. exports due to the weak dollar have increased demand for containers heading out-bound from the U.S. to areas like India and China. And due to the weak dollar, it is unattractive for other countries to import their goods into the US. In response shipping lines are allocating more of their vessels to lucrative routes between Asia and Europe. According to Bob Sappio, American President Lines Senior VP for Trans-Pacific Trade, APL has swung 5 to 10 of its 120 ships world-wide away from U.S. ports in the past year.

Also, steadily-rising fuel costs are leading to a stream of fuel surcharge increases from shippers. In the past, rates were set for six months or even a year; now rates change frequently and with less advance notice. As long as oil costs are rising we can expect these increasing fuel surcharges.

The above factors are complicating pricing and lead times, especially for refrigerated customers who have to pay for containers to be sent hundreds of miles.

Global Exporter is striving to ensure that containers are available for your shipments. As one of USA’s largest mixed load exporters, we are working hard to “make it easy” for you. Via our network of contacts within the shipping industry, containers are often available to us first. But you can help. In order to secure a booking for your shipments, please order well in advance of deadlines, allowing us to secure the best possible rates for your shipment.

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Looking at trebling bilateral trade to $.10 Billion in three years, India and Brazil discussed measures to achieve this target. Mr.Kamal Nath, Union Commerce and Industry Minister, had a meeting with the Brazilian Minister of Development, Industry and Foreign Trade, Mr.Miguel Jorge, to discuss ways and means to achieve a three-fold rise in bilateral trade from the present level of $.3.12 billion.

The two Ministers also reviewed the global economic slowdown and how the two emerging market economies could maintain their growth rates.