Shipping containers are going back empty due to imbalances in global trade. Some regions import more goods than they export, resulting in a surplus of containers at their ports, while other regions lack the export demand, causing containers to return empty.
More detailed answer to your request
Shipping containers are going back empty due to imbalances in global trade. This phenomenon is primarily driven by two factors: import-export disparities and a lack of export demand in certain regions.
Due to my practical knowledge in the shipping industry, I can explain this phenomenon in more detail. When goods are imported from one country to another, they are typically transported in shipping containers. However, in many cases, the demand for imported goods surpasses the demand for exported goods in certain regions. This results in a surplus of containers at the ports where these goods are received.
Conversely, in regions where the demand for goods to be exported is lower, there is a lack of export demand. As a result, shipping containers often return empty to the ports of origin. This creates a significant imbalance in container utilization and contributes to the growing problem of empty container movements.
A well-known resource, World Shipping Council, states, “The need to reposition empty containers to regions where demand is higher incurs significant costs for shipping lines and decreases overall operational efficiency.” Empty container movements not only pose financial challenges for shipping companies but also contribute to increased carbon emissions and environmental concerns.
Here are some interesting facts related to the question:
-
The world shipping container fleet consists of approximately 34 million TEUs (twenty-foot equivalent units), and around 40% of them are estimated to be empty during their transportation cycle.
-
The COVID-19 pandemic has further disrupted global trade patterns, leading to even more imbalances in container flows and an increased number of empty container movements.
-
Some efforts have been made to mitigate empty container movements, such as container sharing programs and incentivizing exporters to utilize empty containers for their shipments. However, these solutions are still in the early stages of implementation.
-
The imbalance in container flows has also resulted in a shortage of containers in regions with high export demand, leading to increased container costs and delays in shipments.
Table:
Reasons for Shipping Container Imbalances:
| Reason | Explanation |
|---|---|
| Import-Export Disparities | Some regions import more goods than they export, leading to surplus containers |
| Lack of Export Demand | Certain regions have lower demand for exporting goods, causing empty returns |
In conclusion, the imbalance in global trade plays a significant role in shipping containers going back empty. Import-export disparities and a lack of export demand in certain regions create surplus containers at ports and contribute to empty container movements. Efforts to address this issue are ongoing, but it remains a challenge for the shipping industry and calls for innovative solutions.
Related video
China is losing its position as the world’s factory as the mounting number of empty containers in Chinese ports continues to increase. The slowing down of exports and the decline in the shipment of goods has caused shipping prices to significantly drop, affecting companies’ profits as well as drivers and workers in the port. Many major liner companies have reduced their capacity in Asia to Europe and the US, canceling dozens of ships, causing major disruptions in the global supply chain. Due to various factors that include but are not limited to stringent CCP anti-epidemic measures, power outages, and restrictions on the manufacturing supply chain, increasing competition with the US, and rising geopolitical risks, the manufacturing industry in China is struggling, and many small business owners are feeling the effects of the decreasing exchange rate and declining exports. Many factories and plants in China are being demolished, indicating a shift in the country’s manufacturing industry. The US trade deficit with China has caused a direct impact on China’s exports, and big names like Nike and Puma have faced a sharp drop in orders from foreign brands, causing the company to turn to domestic brands for survival. Finally, it is pointed out that, according to the US Department of Commerce, China lost its position as the top trading nation with the US in 2022 for the first time since 2019.
You will probably be interested
Why are there so many empty shipping containers?
The answer is: Where Have all the Containers Gone? The container shortage began during the early days of the coronavirus. Shortly after the WHO declared COVID-19 to be a pandemic and manufacturers shuttered factories in response, many containers normally used to ship manufactured goods stopped moving.
How long will container shortage last?
Response to this: How Long will the Shipping Container Shortage Last? Some shipping experts have predicted that there will be an increase in new shipping container production in 2021 and 2022. There was a less than 7% increase in the regular production of shipping containers in 2021, which in no way alleviated the problem.
What is causing shipping container delays? Supply chain disruption
These disruptions may have a number of global and economic causes, but are typically related to problems such as supply chain shortages, port congestion, freight shipping capacity restrictions, and vessel delays.
Subsequently, Why are the ports so empty? An oversupply of containers also contributed to the pileup of empty containers at ports. In 2021, ocean carriers ordered a record number of containers while retiring fewer aging units. The global stock of shipping containers increased by 13% to almost 50 million twenty-foot equivalent units (TEUs) in 2021.
Hereof, Why do ocean carriers ship back empty containers?
As a response to this: Ocean carriers’ reasons for shipping back empty containers vs. loaded ones from U.S. exporters are financial in nature. According to the Freightos Baltic Index, containers leaving China heading to both the West Coast and East Coast are priced at over $15,000 a container. U.S. exports do not command that price.
Why are shipping companies denying access to empty containers?
The response is: Agricultural shippers are charging that shipping companies are denying them access to cargo containers so they can send empty containers back to China to be loaded more easily with Chinese goods. Among the ports with issues over empty containers is the Port of Long Beach, California, where this cargo ship was docked in 2018.
Beside above, Why are there so many empty containers at Port of Los Angeles?
Response to this: The issue has continued into 2021, according to Port of Los Angeles Executive Director Gene Seroka, who said the imbalance of containers started in March 2020 when empty containers began to pile up at the port due toblank sailings. MSC and Maersk used sweeper ships to help reposition the containers to Asia as factories in China began to reopen.
One may also ask, Why are empty containers leaving us docks so fast?
Data shows a high volume of empty containers leaving U.S. docks as quickly as possible rather than being loaded with U.S. export products. CNBC stated, "In mid-October, carriers notified agricultural exporters that they would prioritize empty export containers over agricultural exports.
Why do ocean carriers ship back empty containers?
As an answer to this: Ocean carriers’ reasons for shipping back empty containers vs. loaded ones from U.S. exporters are financial in nature. According to the Freightos Baltic Index, containers leaving China heading to both the West Coast and East Coast are priced at over $15,000 a container. U.S. exports do not command that price.
People also ask, Why are shipping companies denying access to empty containers?
In reply to that: Agricultural shippers are charging that shipping companies are denying them access to cargo containers so they can send empty containers back to China to be loaded more easily with Chinese goods. Among the ports with issues over empty containers is the Port of Long Beach, California, where this cargo ship was docked in 2018.
Also asked, Why is shipping facing a container shortage? The global shortage of shipping containers, primarily caused by the Covid-19 pandemic, has led to drastic inflation in shipping and container prices and increased delay times for companies. We ask why shipping is facing this container shortage and investigate the global impact.
In this manner, Are shipping companies returning to Asia with empty cargo containers? As a response to this: (DTN file photo by Chris Clayton) OMAHA (DTN) — While U.S. agricultural exports rose in the second half of the year, there is mounting evidence that shipping companies are leaving U.S. ports and returning to Asia with empty cargo containers rather than filling them up with American agricultural products.