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Constanta Also Sounds The Alarm About The Global Container Shortage

Constanta also sounds the alarm about the global container shortage

Source: Constantza Port
Constanta, Romania (PortSEurope) February 12, 2021 – Romania’s largest port of Constanta on the Black Sea has joined the chorus of port facilities sounding an alarm about the global shortage of containers. According to Cosmin Carstea, general manager of the Constanța Port Container Terminal, the stock of empty containers in the port is at a very low level and if this trend continues, it may
lead to an imbalance that will have an immediate effect especially on exports of goods. This lack of containers has led to a substantial rise in their prices worldwide, raising a factor of 3-4 times. Florin Goidea, general director of the Administration of Constanța port (APC) said that due to the coronavirus pandemic, China generated extraordinarily large exports, which led to a global, and especially on the routes from China, shortage of empty containers. This made container prices explode from around $2,500 to $7-9,000 dollars per container. The port of Constanța experienced a decrease in container traffic of approximately 4.5% in 2020 to over 650,000 containers. According to data from the main container terminal in Constanta, 36% of container traffic in the port is to to the Middle East. 26% of the total number of containers are sent to Asian countries, but most reach China – 20% of the total. Containers from Constanta reach 15 destinations around the world. Authorities say they do not expect a recovery in the situation too soon, and experts expect the high container prices to be reflected in the price of transported goods. According to Goidea, it is certain that there is not going to be a solution to containers shortage in the coming months, especially since the Chinese New Year is today (February 12) and around it exports of goods from China are always very high”. Reuters, the largest global news and information provider, published in December 2020 an analysis of the global shipping containers shortage damaging China manufacturers’ ability to fulfil increased orders. This is a brief summary of the graphics’ illustrated story: – Exports from China surged 21% in November from a year ago – China is exporting three containers for every one imported recently – Roughly 60% of global goods move by container, and according to United Nations, there are 180 million containers worldwide. – Average container turnaround times have ballooned to 100 days from 60 days previously because of COVID-19-related handling capacity cuts in Europe and the United States – The grounding of much of the global international passenger air fleet – which often also carries cargo – has also boosted demand for maritime freight. – The cost of chartering a 40-foot container from China to the U.S. East Coast scaled a record $4,928 in December, up 85% since June 1. Rates to Europe have jumped 142% over the same period, and by 103% to the Mediterranean via the Suez Canal. – The rates for some shorter-haul – and lower-margin – routes have jumped by even more. The Ningbo Containerised Freight Index from China to Singapore/Malaysia soared nearly 300% between early October and early December as a bidding war for shipping space broke out among Southeast Asian exporters. – Monthly container production output in China – which accounts for 96% of global production – hit a five-year high of 300,000 units in September. – Some private Chinese firms have been stockpiling containers which are made available to the highest bidder. – Industry observers expect the container tightness to persist until coronavirus vaccines are rolled out widely and more global travel resumes. Copyright (C) PortSEurope. All Rights Reserved. 2021.

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