Port of Shanghai takes action addressing container shortage
The latest problem that has taken over the shipping industry is the short supply and blockages of containers. Addressing the complaints from shippers regarding the unavailability of equipment, the Port of Shanghai has taken action to speed up the distribution of empty containers arriving at the port.
The port of Shanghai has announced the opening of an empty container transportation center to serve the Northeast Asian region. The transportation center is the outcome of the partnership established between Shanghai International Port Company and the major shipping lines including Mediterranean Shipping Company, Maersk, and CMA CGM. The purpose of this transportation center is to provide maintenance services for the empty containers and reduce the turnaround time of empty containers in the port.
Chinese officials have said that this center would help in addressing the imbalance between export and import containers. Talking about the reasons for container shortages, they cited the trade imbalances, US port congestion, and the logistic hurdles as major factors contributing to the container crisis. With the busy season of year-end holidays approaching, a solution to empty container shortage was much needed. Chairman of Shanghai International Port, Gu Jinshan said that because of the empty container crunch, the danger of delivery failure looms over the Chinese factories.
The port officials highlighted the good news that in June the container shortage had declined by 14%. As per the market analysis of Drewry, the Newbuild container output has also soared in the first half of 2021. Drewry said that though the prices of dry freight shipping containers have doubled over the past year, in the next few years’ prices will moderate due to an increase in supply and more initiatives taken by ports.
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