“The cost of the containers have increased dramatically over the past 12 months,” Bob Sachs of XL Screw said.  The shortage is due to a “perfect storm” created by a list of reasons for container shortage.

“The steamship lines are really taking advantage of the situation and they are reportedly making record profits,” Sachs said.  “They are very happy.”

Reasons for the container shortage include “empty containers sitting all over the world waiting to be shipped back to the Far East.  Not enough cargo to be shipped back to the Far East,” Sachs explained.  “This creates a lack of container availability to ship back to the USA.”

 • The pandemic also contributes to the container shortage: “Because business slowed down so dramatically last year, I heard that the companies that make new shipping containers cut way back on their new production,” Sachs noted.  “Now they can’t keep up with the demand.”

 • Demand for container space had increased toward the end of 2019 with the economies of the world doing well, Sachs pointed out.  “Companies needed to replenish their inventories due to improvement of the demand for product worldwide.”

 • PPE products are especially in demand now and “governments are paying a hefty price to the steamship lines to move the PPE cargo.”

Sachs termed giving PPE cargo priority “understandable.”

 • Sachs’ fourth reason for the container shortage is steamship lines “cutting way back on their vessel sailings to create a demand on container space thus taking advantage of the situation and being able to raise their prices.”

“Shipping costs change daily,” Sachs finds.

 • Also the upcoming Chinese New Year “always creates a push for available container space,” Sachs added.

The public holiday runs from February 11 – 17, though some companies observe the New Year until February 26.

 • Sachs observed “there are so many ships sitting outside the USA West Coast Ports waiting to unload their cargo.  This is creating long delays.”

All of those reasons combined have “created the Perfect Storm!” Sachs declared.

When will the container situation ease?

“I have no idea when container availability will improve and when shipping costs will stabilize,” Sachs explained.  “There are so many factors created by the Pandemic. These are very unusual times with many unanswered questions.”

“In the past, shortage of container space and large increases in shipping costs typically come and go pretty quickly,” Sachs has found.

“I am afraid to say…not this time due to the uncertainty of the Pandemic and the trade war with China.  You just need to come up to the plate and keep swinging.”  Web: XLscrew.com