US ports are facing empty container pile-ups as supply chains are recovering, while the average time to deliver cargo was 112 days in February, reports London's Global Trade Review.
As of late August, that figure dropped to 88 days.
The Covid-crisis slowdown left containers tied up in longer supply chains, and with demand from western markets out-taking supply from Asia, carriers could not return empty containers quickly enough.
'With a massive shortage of empty containers, carriers had to order new containers to be manufactured in Asia, and these were then fed into the extended supply chains,' said Sea-Intelligence chief executive Alan Murphy.
'As transportation time is now getting shorter, these additional containers will be released back out of the supply chain, and they will start to pile up, primarily in Europe and the US.'
In February, Sea-Intelligence predicted that in North America, there would be 3.5 million TEU stuck at ports, waiting to be sent back to Asia. It has now revised that forecast upwards.
'If transportation time is back to 'normal' by early next year, we will see the release of 4.3 million TEU of excess containers into North America, which cannot be expatriated, within the planned network operations,' said Mr Murphy.
'This will potentially overwhelm empty container depots in the US, an issue which is already beginning to materialise.'
Container xChange co-founder Christian Roeloffs declared that the pile-up of empty containers is compounded by seasonal demand changes and labour issues in the US.
'There is already congestion, like every year, because it is the peak shipping season, and everyone is trying to make sure that retailers have enough inventory on the shelves for the upcoming holiday and Christmas season,' said Mr Roeloffs.
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As of late August, that figure dropped to 88 days.
The Covid-crisis slowdown left containers tied up in longer supply chains, and with demand from western markets out-taking supply from Asia, carriers could not return empty containers quickly enough.
'With a massive shortage of empty containers, carriers had to order new containers to be manufactured in Asia, and these were then fed into the extended supply chains,' said Sea-Intelligence chief executive Alan Murphy.
'As transportation time is now getting shorter, these additional containers will be released back out of the supply chain, and they will start to pile up, primarily in Europe and the US.'
In February, Sea-Intelligence predicted that in North America, there would be 3.5 million TEU stuck at ports, waiting to be sent back to Asia. It has now revised that forecast upwards.
'If transportation time is back to 'normal' by early next year, we will see the release of 4.3 million TEU of excess containers into North America, which cannot be expatriated, within the planned network operations,' said Mr Murphy.
'This will potentially overwhelm empty container depots in the US, an issue which is already beginning to materialise.'
Container xChange co-founder Christian Roeloffs declared that the pile-up of empty containers is compounded by seasonal demand changes and labour issues in the US.
'There is already congestion, like every year, because it is the peak shipping season, and everyone is trying to make sure that retailers have enough inventory on the shelves for the upcoming holiday and Christmas season,' said Mr Roeloffs.
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