Is The Demand For Shipping Containers Falling?
A lot of shipping containers at the port.
Since the world-wide 2019 Pandemic, the world has experienced supply and demand fluctuations with many products, including fuel. It seems these issues are here to stay for a while. As U.S. shipping ports also experience container congestion, many people wonder how long this will continue as well.
In some areas, it appears containers are moving fluidly and companies are receiving the orders they need. Yet, along other ports, containers continue to sit for more than a week before moving onto their next destination. What exactly is going on?
Is There Still Demand For Shipping Containers?
Some may seem surprised to learn that container demands are currently at record highs despite supply issues around the world. U.S. East, West, and Gulf Coast ports have been dealing with container congestion for months as they navigate shipping issues across the globe. Rail-bound containers have longer weight times and freight shipping concerns. This is one reason we are seeing a higher demand for shipping containers.
As containers remain in ports, sometimes over a week, companies grow tired of waiting for their products, wondering how long this will keep up. In an effort to escape the rising container holds, container lines and leasing companies are ordering brand new containers or leasing more of them. This means manufacturers are fulfilling more orders and China is receiving more container orders. This process drives up the price of containers, especially for longer leasing times.
Will Supply Chain Issues Continue?
According to experts, such as Triton International, the demand for containers, boxes, and leasing needs is down. However, their research also shows that while the numbers are lower compared to last year, demand for containers is rising. Triton International is the world’s largest company to lease containers and their reports show an increase in earnings from last year. Disruptions in China’s lockdown protocols have a lot to do with the container situation. When manufacturing experiences peak periods and halts, it alters the flow of production.
More companies are leasing newer containers because older containers remain in cargo holding. While liner demand is easing up compared to last year, the issue is not going away. Triton executives predict congestion will continue and ports will remain the bottleneck to the container congestion crisis.
How Does This Affect Your Business?
Many companies, including major leasing companies like Triton International, are feeling the effects of production issues and the container crisis. Issues like this one puts a halt on company production and causes stress on business owners. Many companies are searching for alternative shipping methods that will help them navigate the shipping crisis and work out time critical shipping logistics.
If the cargo congestion continues, companies will need a better solution to ensure the survival of their business. Partnering with other companies is a good way to use other resources to help business owners manage their shipping needs.
We Can Help You Manage Time Critical Logistics
Trifecta Transport offers all-in-one solutions to help companies manage shipping issues and more for their business. We understand navigating shipping concerns can put a strain on your daily operations and your customers. That is why our team of experts helps you navigate your options so you can choose an option that fits your business needs.
Whether you’re shipping less than a truckload or you need another method, we’re here to help you. We offer booking, quoting, and scheduling help for all your shipping needs. You can receive all the 24/7 support you need to manage your shipping schedules and more.
Call Us Today
Our team goes beyond offering services and educates our customers to help them make the best decisions for their business. Call us today and we get started on choosing the right shipping methods for your business. The team at Trifecta Transport is ready to serve you.
