Where are all the containers?
So where have the containers gone? Many are in
inland depots. Others are
piled up in cargo ports, and the rest are onboard vessels,
especially on transpacific lines. The largest container shortage is in Asia, but Europe also faces a deficit.
To grasp why the containers are where they are, it’s important to first understand the domino effect that has led to the present situation. Let’s start at the beginning.
Pandemic wave creates North American bottleneck
As the pandemic spread out from its Asian epicentre, countries implemented lockdowns, halting economic movements and production. Many factories closed temporarily, causing large numbers of containers to be stopped at ports. To stabilize costs and the erosion of ocean rates,
carriers reduced the number of vessels out at sea. Not only did this put the brakes on import and export,
it also meant empty containers were not picked up. This was especially significant for Asian traders, who couldn't retrieve empty containers from North America.
Then, a unique scenario developed. Asia, being the first hit by the pandemic, was also the first to recover. So while China resumed exports earlier than the rest of the world, other nations were (and still are) dealing with restrictions, a reduced workforce and minimal production.
