Chinese media pointed out that of the global empty containers flowing into China, more than 90% of them are empty containers at terminals.

The picture shows Shenzhen Yantian Port.

(AFP)

[Financial Channel/Comprehensive Report] The global pandemic of Wuhan pneumonia (new coronavirus disease, COVID-19) that broke out in 2020 has disrupted the normal rhythm of the international shipping market. Containers have supply and demand problems and freight rates have soared. Today, there have been changes. The empty containers in Shenzhen Yantian Port have exceeded the largest accumulation in the 29 years since the opening of the port. In addition, the stock of empty containers in the wharf accounted for more than 90%. The Chinese media described that from the difficulty of finding one container to the port of empty containers, It only took half a year.

The Chinese media "Daily Economic News" reported that although it is now a small peak of shipments before the Spring Festival, the situation of empty containers pressing the port continues. Entering December, empty containers have squeezed the resources of the container yard, and it is still the hub of various hubs. Hong Kong is under pressure.

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According to the report, the landing containers in some container yards have been stacked up to the 6th and 7th floors. Only the backlog situation in the temporary unloading yard has improved, and the turnover is completed in about 2 to 3 days.

In addition, SIPG’s Zhendong branch has more than 90% of the stockpiles of empty containers on site, and the company has implemented a number of measures to alleviate the stockpile.

According to the shipping company, the number of empty containers at various ports in China is currently at a historical high.

The pressure of empty containers makes the price of containers keep falling. An anonymous person in the container trade circle pointed out that the volume of container trade has decreased significantly. His company mainly sells containers to small and medium-sized enterprises. The price of containers has been falling this year. The price of the company in August was 2,400 US dollars /TEU, fell to 2050 USD/TEU in December.

The report believes that the source of the current situation comes from the global oversupply of containers.

Xu Kai, chief information officer of the Shanghai International Shipping Research Center, pointed out that there is no doubt that the world is currently experiencing an oversupply of containers. It is not a port, but there are more containers in the world.

Xu Kai still has a positive view on future freight demand, and believes that the international turmoil will not intensify, all production activities will resume at an accelerated pace, consumer demand suppressed by inflation and interest rate hikes will not continue, and high inventories in Europe and the United States will be digested by the end of this year. It is believed that the freight market in 2023 will be stable and positive.

Ma Hui, deputy editor-in-chief of SHIJIE.com, believes that China's domestic container trade activities will not stagnate. There will be a wave of trade volume recovery before the Spring Festival. It is expected that the problem of empty containers will improve around the Spring Festival, and the specific trend will change after the Spring Festival.

But Ma Hui also said that the increase in the stock of empty containers in China is a good thing for the future freight market, because if there are enough boxes, there will be no sudden shortage of boxes, which will improve the resilience of the supply chain.

But freight rates are bound to drop.

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