Global Container Shortage Drives Spike in Shipping Rates, but Brings Windfall for Chinese Manufacturers

10/14/2020

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Sidney Leng and Michael Tatarski | South China Morning Post

Freight carriers are facing a shortage of shipping containers amid a wave of demand for delivery by sea, helping drive up rates and increasing supply chain costs for some businesses across Asia.

Triton International, one of the world’s largest container leasing firms, said in a presentation to investors last month that pick up in demand for its containers had sped up in the third quarter and utilisation was nearly at full capacity.

The company has ordered US$725 million worth of containers for delivery this year, but order volumes for the fourth quarter have been limited by manufacturing capacity – mainly in China, which is the world’s largest producer of containers.

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