The recent container shortage has led to several problems for exporters, such as declining availability and increasing shipping costs. And those challenges are not limited to just one country. Instead, it includes different exporting nations worldwide that have been unable to ship their goods due to insufficient containers available.
However, the US and Europe have recently made it possible for Indian exports to get into these markets after months of lockdown. This move came in response to China's response, which has led to the current situation in which there are more than enough empty containers waiting, so that no single country can be held accountable for any issues relating to past or future trade deals. However, it also benefits all parties involved by providing new opportunities both domestically and internationally, assuming all parties addressed these challenges.
Global Trade and Maritime Traffic
Congestion at transshipment ports has exacerbated the shipping situation as both global trade and maritime traffic have increased steadily. According to the Container Shipping Lines Association (India), or CSLA, the critical gateway port on the west coast of the US has experienced severe equipment imbalance, with 40% of containers not leaving due to a lack of space at other departure points.
According to CSLA's Vaswani, this trade impediment is just one example of how increased maritime activity can pose significant challenges for shippers attempting to keep up with demand while maintaining profitability.
The CSLA has also stated that pricing is an individual decision made by each shipping line based on commercial considerations such as costs, demand and supply, and specific market scenarios. Each company has a unique approach to how they price shipments depending on various factors such as the shipped product or the urgency of the delivery.
Thus, to safely transport goods across the world, truck companies need reliable container systems. The commodities trading industry is worth trillions of dollars annually and relies on these containers for workflow efficiency.
However, experts have noted that there are not enough ships built in India as new orders with shipyards may be needed sooner, which would help improve shipping lines' fleets while also boosting local manufacturing efforts by releasing close to nearly 50,000 empty containers back into circulation.
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