You know, one of the biggest challenges in the shipping industry right now is the container shortage. Let's take a closer look at why this is happening and what we can do about it.
The Domino Effect of Container Shortage

During the pandemic, strict lockdowns around the world led to frequent container shortages. Labor shortages and slowed trade meant that empty containers couldn't be picked up in time, piling up at ports. This made container supplies even tighter at other ports. Plus, with fewer ships operating, the imbalance between supply and demand for containers got even worse.Take the Port of Los Angeles, for example. It's been plagued by port delays and congestion for a long time. If containers get stuck there, other ports face shortages, container prices soar, and the international logistics supply chain is seriously challenged.

I. Top Five Reasons for Container Shortage

Here are some of the main reasons for the shortage of shipping containers.
1.Port Congestion
Port operations involve a series of complex maritime procedures. To carry out these procedures, ports need enough workers. Labor shortages can lead to delays and congestion. Surprisingly, even busy ports like Los Angeles and Long Beach have experienced congestion due to a lack of labor.
2.Consumer Behavior
The pandemic has caused a significant change in consumer buying behavior. People are now buying more goods online. This has led to a strong demand for freight and a huge increase in the need for containers.
3.Reduced Number of Available Containers
Emergencies like the Russia-Ukraine war and the Red Sea crisis have suddenly disrupted the normal flow of global containers. Even though there are millions of containers worldwide, these disruptions have led to a shortage of containers at some ports.
4.Peak Shipping Season
As traditional holidays like Chinese New Year and Golden Week approach, foreign trade enterprises in China usually ship their goods early, leading to a significant increase in container demand.
5.Ship Diversions
Due to the Red Sea crisis, container ships 绕行 Cape of Good Hope has become the norm. This increases the number of containers at sea and reduces the number of empty containers onshore. Plus, longer routes mean slower return of empty containers, making empty containers even scarcer at shipping ports.

II. Solutions to Container Shortage

Since the container shortage problem is mainly influenced by macro factors such as global trade and container supply and demand, it's hard to completely solve this problem at its root. However, you can follow these strategies to plan ahead and reduce the impact of the shortage.
1.Digital Logistics Solutions
Digital logistics solutions are one of the best ways to ease the container shortage problem. You can track containers in real time and better plan your cargo transportation.
2.Accurate Market Forecasts
We recommend that you keep an eye on the container shipping industry. This will help you better plan your cargo transportation, prepare for any unforeseen emergencies, and make the wisest decisions.
3.Global Container Supply Situation
Understanding the container shortage and supply situation around the world will help you better understand the container industry.
Container Supply Situation in Asia
As the world's largest trading exporter, China has always been the container hub of Asia. However, in recent years, the manufacturing industries in other Asian countries like Vietnam and India have developed rapidly, and their exports have increased significantly. So, these regions have a high supply of containers.
Container Supply Situation in the Middle East and Africa
The growth of trade in Africa and the Middle East has led to an increase in container demand in these regions.
Container Supply Situation in Europe
Due to political and economic reasons, the container supply in the UK and Europe has been unstable. The Russia-Ukraine war, worker strikes, and trade restrictions have all had an impact on container supply.
Container Supply Situation in the United States
Congestion at West Coast ports in the United States has led to a container shortage. So, businesses are now inclined to ship containers to East Coast ports, which has eased the problem to some extent.
III. How to Effectively Deal with Container Shortage?
The container shortage is not caused by a single reason but is the result of a series of factors. In today's container shipping industry, emergencies happen frequently, and the shortage problem has become a challenge for every practitioner. Don't worry, at CIMC Equilink, there are containers of various sizes, good quality, and low prices for you to choose from.