Empty Container Trade Putting Strain on Ports in Q1
The Port of Rotterdam announced that the combined weight of its Q1 TEU volume fell by 0.7 percent, even though its total container trade grew by 4.5 percent, indicating that the rising demand for empty containers shows no indication of slowing down, according to FleetMon.
It stated: “Most hubs, however, will be able to handle the demand imbalance with their current facilities, so further spending on specific port equipment is impossible.
“Driven by a growth in exports from Asia and the continued e-commerce boom, the demand for empty containers has significantly increased in recent months. Shipments at ports around the world have fluctuated in the last year as the COVID-19 pandemic disrupted all aspects of the supply chain.
“This was further compounded by the blockage of the Suez Canal in March 2021, creating the fear of fresh port congestion in different parts of the world. Carriers, on the other hand, have seen substantial growth in earnings as brisk demands and diverse logistics strategies converged. A new Drewry survey suggests a two-year trend to further increase carrier earnings.”
Eleanor Hadland, Senior Analyst–Ports and Terminals, Drewry Shipping Consultants, told PTI that ports and terminals will continue to deal with the current market situation.
“From a port terminal standpoint, I don’t see the current disparity driving investment in specialized Empty Container Handlers because there will be plenty of yard equipment to handle these containers through regular stacks,” Hadland stated.
Hadland also added that as yard congestion worsens, most container terminals will assign each carrier a restriction on the number of empty containers they may carry within the stacks; as yard congestion worsens, these limits can be further reduced.
