Empty container concerns amplify as Red Sea shipping crisis prolongs

Posted on January 29, 2024   |  

The Red Sea shipping crisis continues, causing concerns about the availability of empty containers, reminiscent of challenges seen during the COVID pandemic.

Container shipping faces significant disruption, as approximately 90% of vessels choose longer routes to avoid Houthi threats in the ongoing Israel-Hamas conflict.

The diversion of container tonnage leads to a surge in freight rates, creating challenges for importers in securing access to containers at origin.

Importers are expected to encounter increased difficulty in obtaining containers in the three weeks leading up to the Chinese Lunar New Year.

CMA CGM, the world's third-largest liner, announces an additional $100 per unit surcharge for empty container imbalances, on top of existing equipment surcharges for routes from Turkey to the Mediterranean and North Africa.