Logistics: Container shipping “return to normal” not until the end of 2022
MEKSEA.COM – According to analysts, 12% of the global container shipping capacity caught up in delays could take to end of 2022 to “return to normal”
Base on data from Global Liner Performance (GLP) and commercial Capacity Outlook (TCO), in August this year 3,1 million TEU, equivalent to 12,5% of shipping capacity was out of service due to delays. It used to reach 11.3% in February, dropped to 8.8% in April.
Analysts predicted container shipping will “return to normal” by the end of 2022. (photo: Internet)
It’s worth mentioning that this decrease in shipping capacity is equivalent to removing a fleet slightly larger than CMA CGM or Cosco. Which are the third and fourth-largest container lines of shipping industry.
Besides that, delays in US West Coast with a record number, 63 container shipping have been waiting to enter the ports of Los Angeles and Long Beach (early of September), roughly double the number the two ports can handle at any one time. Based on the last congestion in Southern, analysts estimated it could take till April 2022 to resume normal operations.
However, congestion and delays are no problem in US West Coast, but also a global problem. Thus, the worldwide container shipping supply chain takes much longer to “return to normal”.
Therefore, facing current operational challenges, analysts said that container shipping “return to normal” not until end of 2022.
Meksea’s factories started to ramp up production as soon as the epidemic in Vietnam was effectively controlled.
By Hayati (Meksea Team)
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