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Lockdowns, Restrictions and Social Distancing to Fight Pandemic Adds to the Severity of the Shortage of Containers

The cargo industry has faced different challenges in the last couple of years. Peak season container shortage is a recent crisis for cargo companies. Rare availability leads to high prices of containers, which increased the prices of goods all over the world. Some companies could not export their products due to unprecedented high prices of the container.

During peak season usually demand is higher than other months of the week, but this time containers shortage stopped many companies to send their goods. High prices of goods make them unwanted so their demand vanishes. Shortage of staff also makes things worse to meet the increased demand for containers.

In the UK driver’s shortage has also been reported to drive vehicles carrying containers. Heavy goods vehicle driver shortage in the UK has also been caused by restrictions for EU drivers after the UK leaves the EU. Lockdowns, restrictions and social distancing to fight pandemics add to the severity of the shortage of containers. Air cargo to India is least disrupted as cargo flights keep landing in the country.

Earlier limited production of goods reduced the number of cargo ships in use for goods transportation. Empty container collection was also neglected in that situation so container providers are not ready to meet the rise in demand for containers in the peak season of 2021.

Big names in the cargo sector tried to normalize the situation by sending goods in reefers to a destination where reefers demand is high. Old containers have also been brought into use during that time of shortage and buying as many containers as possible has also been noticed. Even then shortage of containers was not reduced significantly.

During a pandemic, ships sail without being fully loaded

Gridlock situation at ports also caused a delay in clearance of containers in queues. Main trade hubs of the world suffered the most due to that situation. The United Kingdom is also a big trading nation so a similar situation prevailed there. News of the build-up of containers at ports discouraged traders to book cargo.

Some of them utilize air cargo services and uphold commitments with buyers. Delivering goods at the destination without delay is the primary demand of clients. Cargo to India near me offers competitive rates for parcels to India. Overall global chain disruption has raised many questions on the future of ocean freight forwarding.

This shortage of containers will last for some time until things reach their proper places. Some platforms still offer containers to clients though prices have increased. During a pandemic, ships sail without being fully loaded but ships carry on their routes and no changes are made. Every stakeholder in the cargo industry is playing its part to reduce the impact of container shortage.

Some ships change routes but this also causes a delay in the delivery of goods. To suggest solutions regarding the current situation experts are eager to know exact reasons. For manufacturers and retailers, it is important as well so they are eager to give their input.

Box size for different items has been reduced up to 30% to create more room in containers and fight shortage problem. Without shipping containers at destinations, where require this situation will persist. Sharp volatility of demand and supply due to pandemics is also the reason for the present situation at busy ports around the world.

Containers have made it easier and safer

The normal cargo ship capacity of holding containers varies between 10,000 to 15,000. The largest ships carry a whopping number of 24,000 containers at a time. some experts suggest enhancing port capacity so that gridlock situations may not occur. Ten times increase in rates of cargo transportation resulted in higher inflation.

This steep increase in rates deterred many traders of big and bulky items to export or import. India and United Kingdom are two big economies of the world so their bilateral trade also experienced delays and high shipping costs. Door to Door cargo to India is normally used for smaller parcels.

Products sent through air cargo do not face this type of situation. Some traders find air cargo to India as an alternative to blockade in peak season. Air cargo booking has increased so more business for cargo companies offering transportation of goods through aeroplanes.

Containers have made it easier and safer to transport goods all around the world. More and more people use them for sending their goods from the UK to India. This is why the shortage of containers disrupt any supply chain. The recovery of the world economy will face such challenges to get back on track.

Millions of containers are in use for international trade

Dry freight ships and tankers are also facing delays due to a shortage of containers and blockade of ships. The global supply chain has been experiencing delays because 90% of global trade is carried out through oceans. Cargo ships facing delay means world trade experiencing problems and consumers will bear consequences.

Traders and cargo companies can find containers at competitive prices from different online forums. Clients desire to keep transportation charges lower so that their profit margin remains healthy. The present situation has pushed them to pass on the burden of high prices to buyers and their margins also dipped. Millions of containers are in use for international trade and their number has been increasing every day. Their management is key to ensure availability and the present shortage of containers has pressed for efficient container management. Proper planning requires a time of reduced demand of containers so that when demand picks up, container availability remain smooth.