News
- Transpacific capacity squeeze
- 5/25/2010
Exclusive: Lack of boxes adds to transpacific capacity squeeze
Forwarders fear new surcharge
Equipment shortages are adding to the capacity squeeze on transpacific container trades and prompting fears of new surcharges.Paul Tsui, chairman of the Hong Kong Association of Freight Forwarding and Logistics (Haffa), said carriers operating out of China were short of both slots and equipment. “
“We have heard that some lines are now looking to introduce an equipment repositioning charge to pay to get empties back to China,” he told IFW.
“I think this will get more serious in the next few weeks and will remain an issue for a long time – at least until the end of the year.”
Peter Ulber, executive VP for sea and air logistics at Kuehne + Nagel International, said the global container fleet had barely been refreshed during 2009.
“A year was lost, and that’s why we’re seeing these shortages now,” he told IFW.
A source close to a leading carrier in Asia confirmed equipment was “running very tight” and attributed shortages to the rapid volume recovery across the trades, the impact of slow-steaming and the dearth of new box orders by carriers and container leasing companies during the downturn.
The situation has this year been further exacerbated by factory production capacity constraints caused by labour shortages in China, which has capped the supply of new boxes.
“Leasing companies are, more or less, out of stock and new leases can only be supplied when new units can be delivered from factories,” added the carrier source.
Most lines have been attempting to manage the shortfall by pre-booking leased boxes to cope with anticipated booking upsurges.
A spokesman for the Transpacific Stabilisation Agreement said the alliance did not plan any new charge related to equipment shortfalls, but did not rule out “carriers acting individually at some future point”.
He added: “Difficulties in ramping up production have contributed to equipment availability problems in Asia, but it is also affected by other factors, including high demand and higher relative rates in other trade lanes.”
From IFW, Read the article here:
Exclusive: Lack of boxes adds to transpacific capacity squeeze