Greg Miller of freightwaves.com explores how container shipping might fare in 2021 in a fascinating article.
“There could be a hard landing when the container boom finally ends.”
Global container shipping network bursting at the seams
As 2020 draws to a close, the global container shipping network is bursting at the seams. The Shanghai Containerized Freight Index rose again last week to a new all-time high. The market is talking all-in rates for Asia West Coast (including premiums) of more than $8,000 per 40-foot equivalent unit (FEU) and for Asia East Coast of $10,000 per FEU.
Availability index at second-lowest level ever
The Container xChange Index for container availability has dropped to its second-lowest level ever. And there are still about 20 container ships anchored in San Pedro Bay waiting for berths in Los Angeles and Long Beach.
Will the import boom create overstocks?
The critical question for 2021 is: Will this import boom leave buyers with excess inventory? Have they “borrowed” transportation demand from the future? Is shipping in for a hangover or is the party just getting started?
Source: freightwaves.com
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