News / Container Ship Deliveries To Break Record

Container Ship Deliveries To Break Record

10 February 2023 - by - in Industry News
Container Ship Deliveries To Break Record

Cargo ship with many containers.

Over the past year, many businesses have struggled to understand what’s happening with shipping companies. Whether these companies experience shipping halts or worker shortages, these issues affect businesses world-wide. Freight shipping and railroad companies experienced their own issues, and now container shipping appears to fluctuate in deliveries. While it looks like container shipping seems to break records, this may not fix transportation issues around the country. 

Is There An Increase In Container Ship Deliveries?

Whenever a company experiences an influx of cash or a demand for a product, they do their best to meet the demand or use the cash to purchase more goods. This is exactly what is happening with container shopping. This past year, the shipping container industry experienced a higher profit margin, affording them to spend more money on containers. According to experts, these companies are continuing to place orders for more containers, amid reducing freight rates. Although the demand for container shipping is currently low, there is an excess of containers, which could cause an issue in the market. Experts say the order for container ships is higher than ever, breaking unprecedented records. 

Over the next two years, we can expect deliveries to increase to approximately 2.6 times higher than the average in the past 20 years. New orders for dual tonnage that burns traditional and marine fuel are rising, and shipping companies believe they can save more money during a time when inflation continues to soar. However, this may not happen if they order more containers than the market can handle.

Will This Increase Speed Up Deliveries This Year?

Amid the increased order for shipping containers, the question remains whether the market can handle the influx of containers. While this may look like a sign that shipping companies are doing well, the opposite is true. More orders for containers require more fuel, which cuts into company profits. Essentially, these companies will lose money if they continue to order containers they can’t use. If capacity increases while demand decreases, these companies will struggle to keep up with a wide fleet of containers. The goal is to meet consumer needs and keep the extra containers on reserve until there is a wider need for them. 

Experts cannot predict whether more containers will equal faster deliveries this coming year. They do believe more ships mean higher costs in fuel and maintenance, leading to fewer profits. Carrier companies can help avoid this issue by getting rid of older vessels as they gain newer ones. 

Working With A Shipping Logistics Company 

Ordering more shipping containers doesn’t mean there is a higher demand for goods. If your company uses freight, domestic, or another shipping method, working with a shipping logistics company can help you navigate the details for your business. Booking, scheduling, and finding the best shipping rates can feel overwhelming. That is why Trifecta Transport helps businesses find the best shipping method that works for their company. 

Our all-in-one customer solutions help businesses navigate technology and affordable rates for their company. Whether you need less than a truckload or you’re not sure where to begin, let our team offer you support. We use our knowledge and experience to help your business manage shipping needs and give you peace of mind.  

Contact Trifecta Transport Today For A Quote

Are you ready to partner with our team for shipping support? Contact Trifecta Transport today for a quote on our services. If you’re searching for a reliable company to help you navigate shipping issues, get in touch with us today. We are ready to offer the support you need for a successful business.