① Tobias Meyer, CEO of German logistics giant DHL, warned on Wednesday that continued interference with global trade caused by the Houthi attacks in the Red Sea may cause a shortage of containers in Asia in the next few weeks; ② In the past, when there was a shortage of empty containers, Asian ports were often the “hardest hit areas.”
AFP, January 18 (Editor: Xiaoxiang) Tobias Meyer, CEO of German logistics giant DHL, warned on Wednesday that ongoing disruptions to global trade caused by Houthi attacks in the Red Sea could cause a shortage of containers in Asia in the next few weeks.
Meyer said during a panel discussion at the Davos Forum that this shortage is likely to occur because there may not be enough containers being shipped back to Asia.
He said we must keep an eye on this. However, he also mentioned that the current disruptions cannot be compared to the supply chain difficulties during the COVID-19 pandemic three or four years ago.
In the latest news on the Red Sea situation published on DHL's official website this week, the company warned that “in the foreseeable future, shipping costs on important trade routes are increasing because all major shipping companies have suspended Red Sea service and sailed their ships near the Cape of Good Hope in Africa, which will increase shipping time by about two weeks.”
DHL warns on its website, “Equipment problems have begun to appear and are expected to worsen. This is due to the failure of ships to return to Asia on time, leading to a shortage of usable equipment for future shipments.”
Currently, the Red Sea crisis continues to unfold. Houthis attacks on container ships have led to restrictions on traffic in the Red Sea and the Suez Canal and the departure of ships. The direct impact is a shortage of containers and a decrease in ship capacity. In the past, when there was a shortage of empty containers, Asian ports were often the “hardest hit areas.”
According to data from the shipping consulting agency Vespucci Maritime, before the Chinese New Year, the number of containers arriving at Asian ports is expected to decrease by 780,000 TEU (international unit of a 20-foot container) compared to the past.
According to industry insiders, in some places where containers are currently in short supply, carriers have begun to favor VIP customers and customers with high spot withdrawals. However, as the return efficiency of empty boxes becomes less efficient after the detour, compounded by the peak of shipments before the Lunar New Year, the shortage crisis of empty boxes, capacity, and space may become increasingly prominent in mid-late January.
Che Meichao, a macroeconomic analyst at Yide Futures, pointed out in an interview with the media, “Space on European routes continued to be tight last week, and the average space utilization rate for ships was close to 100%. In addition, concentrated detours have increased port congestion, and the delay in arrival is compounded by the peak domestic pre-Spring Festival shipping season. The number of containers in transit has increased, and the return of empty containers has slowed down.”
Faced with the advent of the empty container shortage crisis, some shipping companies and freight forwarders have now begun to act. According to data from various shipping platforms, many shipping companies have recently adjusted and shortened their use cycles, and some liner companies are also speeding up the return of empty boxes to avoid a shortage of empty containers at Asian ports of origin.