There aren’t enough containers to keep world trade flowing

A shipping container shortage that’s left everything from Thai curry to Canadian peas idling in ports may be about to get a whole lot worse as China steps up its coronavirus precautions on incoming vessels.
There aren’t enough containers to keep world trade flowing

Gantry cranes stand idle at the Trapac Terminal at the Port of Los Angeles in Los Angeles, California. Picture: Tim Rue/Bloomberg
Gantry cranes stand idle at the Trapac Terminal at the Port of Los Angeles in Los Angeles, California. Picture: Tim Rue/Bloomberg

A shipping container shortage that’s left everything from Thai curry to Canadian peas idling in ports may be about to get a whole lot worse as China steps up its coronavirus precautions on incoming vessels.

Unloading holdups in China and delays on the return of vessels when the outbreak was largely limited to Asia have left shippers waiting for hundreds of thousands of containers to move their products.

But as the disease goes global, the port of Fuzhou is starting to quarantine incoming ships from countries including the US for 14 days. That threatens to exacerbate the crunch.

Containers bringing consumer goods from Asia are normally unloaded, then filled with exports of other commodities. Brazil usually ships meat, pulp and coffee in containers to China, a journey that takes a month each way, while Canada uses them to ship everything from speciality crops to lumber, plywood and paper.

The availability of cargo containers at Hamburg, Rotterdam and Antwerp in Europe and Long Beach and Los Angeles in the US are at the lowest levels recorded, according to a Bloomberg report. Imports to the port of Los Angeles and Long Beach, which have a 35% share of containers coming into the US, fell as much as 13% in the first two months of the first quarter. International volume could begin to increase as Chinese exports pick up, he said.

Container throughput in the port of Shanghai fell 19.5% in February from a year earlier, with outbound containers slumping 25%, according to data from the Municipal Statistics Bureau.

Canada doesn’t have enough containers to export some of its pea and lentil crops and exports are running as much as two months behind after 30 vessels from China cancelled their sailing to Vancouver since January, Cherewyk said.

The legumes, used in everything from vegetarian cooking to packaged food, are in high demand as buyers stock up on dry, packaged goods and about one-third of the Canadian crops rely on containers to ship, he said.

“They’re a little bit stressed right now,” said Mark Hemmes, president of the Edmonton, Alberta-based Quorum Corp, a company hired by the federal government to monitor Canada’s grain-transportation system.

“Hopefully with China starting to start up its production, this will correct itself in the next number of weeks.”

Adnan Durrani, chief executive officer of food manufacturer Saffron Road, says getting certain spices, like curry from Thailand, was taking longer than normal by about a month. In the end, he was able to get what he needed, but there were higher shipping costs to get it on time. The coronavirus has “put some stress on the supply chain,” he said.

Brazilian coffee sellers have been struggling to secure forward bookings due to the shortage as many containers leaving to China aren’t returning.

US pork exporters are also crimped by a tighter supply, though that’s partly since they are moving record high volume to China, said Laurie Bryant, executive director of the Meat Importers Council of America.

- Bloomberg

[snippet1]987600[/snippet1]

More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up