operational impact from the creeping equipment shortage in Asia – dominant
headhaul traffic has caused empties to pile-up at ports in the US and Australia earlier this
carriers to plead for the swift return of used import boxes.
The shortage is most critical at Inland
to New Jersey-based Worldwide Logistics (WL), the equipment shortage has spread
to India, partly due to a drop in import volumes from China after trade
restrictions were imposed by the government. “The shortage is most critical at Inland Container Depots (ICD) but
also evident at port-side locations,” the forwarder noted.
volume from India to the US is extremely strong, as US importers look to
replenish inventory depleted during the shutdown period in India, in response
most direct and transhipment services to the US east and west coasts from the
major gateway ports of Nhava Sheva (Mumbai) and Mundra were impacted, with transhipment
further exacerbated by the tight space from Asian transhipment hubs.
Limited new container manufacturing in
limited new container manufacturing in India which would otherwise serve to
alleviate some of this pressure.
As a result,
WL said carriers had begun to offer guaranteed space surcharges of US$750 per
container, similar to the ‘no-roll’ premiums found on the deepsea trades over
the past couple of months.
Pharmaceutical companies have to wait
almost two weeks to get bookings for US ports
Pandit, CEO of Conbox Logistics, told a shipping “There is waiting period to get bookings and containers for one or two
weeks on certain sectors, such as pharmaceutical companies who have to wait
almost two weeks to get bookings for US ports.
planned in large volumes like marble, rice and other agro commodities are also
getting delayed,” he added..
Lack of government support for exporters
There was a lack of
government support for exporters rocked by lockdowns. “Exporters are finding it hard to execute
orders due to a lack of government support in the form of stimulus or financial
aid ” he claimed.
Container volumes in Indian ports
between April and August this year plummeted by 25 per cent on a year on year to 3.2 Million TEUs according
to Indian Port Association.