8.1 C
Hamburg
Tuesday, April 13, 2021
Home Most Visited Empty boxes in US and China lying in depots despite the shortage...

Empty boxes in US and China lying in depots despite the shortage issues

Despite the urgent need for containers in China and the US, the average period that empty boxes spend in depots is 61-66 days, a significantly higher average than the global one of 45 days, according to a research project by FraunhoferCML and Container xChange.

Researchers said the high standard deviation of 85 days in North America and 129 days across Asia indicates many cases where containers spend far more days inside depots than the average suggests.

Compared to the Middle East (21 days on average) and Europe (23 days on average), it takes more than 30 additional days to move containers out of the depots and make money with them.

Average and median time of containers (in days) between “empty in depot” and “empty dispatched” | Source: Research Project FraunhoferCML & Container xChange

The container manufacturing industry in Asia is benefitting from the shortage situation with China International Marine Containers, the world’s largest box manufacturer, announcing a boost in its orderbook.

Container xChange, a platform that connects users and suppliers in container logistics, said container availability across China is still at a record low, while US ports are overwhelmed by a surge of shipping containers from Asia, full of products retailers are eager to get on shelves for the holidays.

Due to the fastest increase in demand after months full of blank sailings, container availability for 40HCs is only at 0.05 CAx (Container Availability Index) points compared to 0.63 at the same time last year.

CAx 40HCs for Shanghai | Above 0.5 indicates a surplus and below 0.5 indicates a deficit of containers | Source: Container xChange

Although the US East Coast is usually a surplus location of equipment (last year’s CAx value for 40DC was 0.7), the container availability dropped to 0.43 indicating actually fewer containers than needed.

Latest Posts

Suez induced port congestion set to hit terminals

More than 1.9 million TEU of capacity is currently on the water and heading to congested ports all over the world according to logistics...

Montreal dispute back on as MEA and dockers go head to head

A labour dispute that has been simmering since the end of 2018 is bursting into the open again following a nearly eight-month hiatus with...

Maersk picks up AE19 service pace

Maersk will hasten the pace of its AE19 service, which is a combination of a short-sea shipping and an intercontinental rail service between Northern...

Two vessels re-enter service after engine failures

Following engine failures on both the MSC Ariane and Maersk Eureka the two vessels are back in service with the Maersk Eureka already having...

CMA CGM sets new reefer charges from Morocco

CMA CGM has confirmed new reefer surcharges from Morocco to several destinations worldwide, which will take effect from 15 April. In the first instance, the...