Earlier this year, logistics experts predicted there would be enough container capacity and container ships to deal with supply chain problems ranging from maritime crises in the Red Sea to drought in the Panama Canal. But Goetz Alebrand, head of Americas shipping at forwarder DHL Global Forwarding, told CNBC that ship space on many trade routes is insufficient to meet market demand.

“Trade routes from Asia to Latin America, trans-Pacific routes and from Asia to Europe are all facing space constraints on ships. The shortage of empty containers is affecting specific ports, certain service providers and certain types of containers,” Alebrand said. He pointed to a shortage of 40-foot containers at China's Chongqing inland port last week.

According to Judah Levine, head of research at online freight trading platform Freightos, in March and April, ocean carriers can use idle ships as well as ships from other routes. other to help compensate for longer trips, help containers rotate and ensure weekly departure schedules.

“But this means there is no more excess capacity in the market,” he said.

Bad weather in East Asia in late April caused some additional delays as ocean carriers bypassed some ports in the region or shortened turnaround times at destination ports. That also means fewer empty containers being returned to China.

“The recent increase in export demand from China, coupled with a decrease in the number of empty containers, has meant that shippers are starting to find it difficult to find empty containers at some export hubs. With shipping capacity stretched, increased demand, although not too strong, is still enough to push freight rates up. The shortage of empty containers pushes freight rates up even further,” said Levine.

Concerns about astronomically increase fares as during the pandemic

The latest increase in shipping rates comes after an increase at the beginning of the year due to the maritime crisis in the Red Sea. The cost of increased logistics prices will eventually be passed on to consumers. The rapid increase in shipping freight rates during the Covid-19 pandemic is one of the factors considered by the US Federal Reserve (Fed) to be the cause of inflation. Recently, logistics service providers simultaneously warned shippers around the world, including major retailers, about a shortage of empty containers.

“Ocean shipping companies are facing a serious shortage of empty containers due to prolonged congestion, canceled ships... Many shipments are delayed due to a shortage of empty containers, leading to a backlog situation. big. Therefore, capacity in the shipping market will be much more limited,” Orient Star Group, a logistics, sea and air transport service provider in Hong Kong, warned in a letter to customers. row.

Orient Star Group said that the new rate increase set for June 1 will increase the shipping cost of each container by 1,000 USD, because shipping companies are "a bit greedy" due to the sudden increase in demand. .

MSC, the world's largest ocean carrier, has announced new freight rates ranging from $8,000-$10,000 per 40-foot container shipped to the US West Coast, effective from May 15 to May 31. 5.

Taiwan's Wan Hai Lines said it will charge additional fees to ensure space on the ship.

In a notice sent to customers, forwarding service company Honor Lane Shipping (HLS) in Hong Kong warned that while spot freight rates continue to increase, capacity to transport goods from Asia continues to tighten. “That has allowed carriers to apply ‘diamond rates’ like during the pandemic.” In addition, shipping companies canceling port calls increases pressure on freight rates.

Shipping research firm Drewry said that a total of 17 itineraries were canceled on the trans-Pacific route from week 20 (this week) to week 24 of the shipping schedules of ocean carriers.

HLS said the above headwinds will not improve anytime soon as the US consumer economy remains strong. With US retail sales in 2024 forecast to increase by 2.5-3.5%, HLS predicts the tight space situation on container ships will continue at least until June.