At present, container shortages and soaring freight rates are factors that are pushing up all raw materials and product prices. Even if the market rises, it is still good if it can be shipped in containers, but now we are in a serious situation where we cannot physically issue it. In addition to the fact that there is no space available in the container space, there is also talk that shipping companies dislike heavy objects, and those involved in scrap, iron, nonferrous raw materials, and products are facing hardships that have never been experienced before.

Where did this container shortage start in the first place?

According to an industry official' explanation, "Sluggish maritime logistics due to the new coronavirous pandemic → Response to reduced flights by each shipping company→ China's import and export increase from about June→ delays in U.S. container ports (LA, etc) → on-land cargo handling delays→ container market surges→ to catch up, Pre-Brexit rush-in cargo handling delays container cargo handling in the UK (due to lack of on-land container recovery workers) → U.S. arrival handling is tight before the Christmas holidays → container market surges around the world → to the present".

She continued, "As a result of the reduction of flights by shipping companies, it is impossible to forward empty containers, so the ship is stuck at the landing, the loading point, and the via location, and the freight rate is growing rapidly. Unfortunately, balkers and product ships do not have the same rise width, so it is not an end to say that this is a unique market for container market conditions. In particular, containerships to and from China tend to have higher freight rates on their own because of the demand.

By the way, if you look at the tightness of this containership from the bunker (ship fuel) industry, it seems that the supply of bunkers for December due to delays in containerships arriving in China is not enough, and there is too much supply in the spot market."

―How long do you think this container shortage will last?

"This situation is expected to continue until the end of January 2021, when China enters the Chinese New Year season, and will be resolved by the middle of February of the following year. However, with the recent appearance of new corona variants throughout the world, if port operations in Europe and the U.S. fall, there seems to be a view that the tightness of containerships will be prolonged."

In addition, according to the person in charge of the logistics company, "The rate for Thailand and Vietnam is soaring, from $100 (per 42ft container) at the start of the year to $1,000 now. Since it has been removed for Japan, where the freight is originally cheap, the container has not returned to the top of China. It is also difficult to carry out cargoes in Singapore, which is as a transit point."

"The absence of empty containers is also a problem, but in addition, the absence of container space on ships is also a problem. It feels like the seats on the plane are filled. However, this is also a complicated story, but the space is reserved by someone, and it is actually vacant. It's like struggling with puzzles every day."

He continues as follows, "Anyway, shipping companies are shying away from scrap and other heavy objects. I prefer the one that the unit price is high and light. Some shipping companies stop talking just because they scrap it."

With this, it is a waste situation that cannot be put out to put out a great price iron scrap.

If the freight increases, it is usually borne by the exporter. For example, the price for Taiwan is also soaring, at $400 to $500 per bottle. It seems that negotiations such as breaking down the freight fee which went up with the importer are continuing now because it became a shipper burden. It is also the same in Malaysia and China. It seems that the cancellation is not the current state just because the freight has increased for copper and aluminum systems. Conversely, demand for copper and aluminum scrap is strong.

The export shipper says "Inquiries from overseas are extremely strong. We also want to ship more and more, but since there are no containers, we first ask the logistics company if there is room available, and then we book it. I only book the space I have, but this is quite a struggle. I've been in the scrap business for 20 years, but this is the first time I've experienced it."

Logistics companies say again, "The container is managed by the leasing company, but I hear that the leasing company is reluctant to put out the container in order to raise the rate." And the information seems to be complicating.

On the other hand, "China wants to put things out, so I'm willing to want empty containers. It is a fairly tight container market now, but if you put things out before entering the Chinese New Year holiday, will the container market normalize? There is an extremely calm view, too.

（IRUNIVERSE）