Carriers face threat of container shortages in 2011

THERE are mounting fears that a container shortage will emerge in the coming months as box manufacturers struggle to keep up with rising vessel slot capacity.


Alphaliner estimates the box-inventory-to-vessel capacity ratio will decrease to 1.99 by the end of 2011, down from 2.03 last year, which it described as the lowest ratio on record, and highlighted this figure as far lower than the 2.99 boxes per slot in 2000.


The Paris-based maritime consultancy said the ratio dropped "significantly" in 2009 as the financial crisis prompted carriers and leasing companies to dispose of a large portion of their older stock as utilisation levels declined. Consequently, the manufacturing of new containers almost stopped in 2009 as demand plummeted.


The sharp upturn in demand for sea freight last year resulted in an "acute" shortage of containers in Asia it said, with some carriers forced to bring in empty containers that were being used on the Europe and North America trades, to fill the gap in the Far East.


"The container imbalance has stabilised since July, as the production of boxes took off again while the scrapping of older units was virtually halted. The fall in demand during the fourth quarter, following the end of the summer peak season, has also helped to bring back the balance. While carriers look better prepared for the forthcoming summer season, the surge in new box prices could dampen additional orders for new containers," Alphaliner analysts said.


Analysts also blamed the current high price for new containers mainly on capacity constraints at Chinese manufacturers, which it said account for around 96 per cent of the total box building capacity worldwide.


"Although production is estimated at only 66 per cent of the maximum annual capacity in terms of nominal output, factories are still unable to return to full production after most manufacturing lines were shut in 2009. Most are unable to work on double shifts due to labour shortages. Especially skilled workers are presently in short supply in many parts of China," the report added.
(Source:http://www.schednet.com)