Australian exporting companies are affected by a global container crisis exacerbated by China’s sharp economic recovery from the pandemic.
China enjoys booming exports and containerized exports, much higher than its imports, compared with other developed nations.
Analysts claim that for every container that comes from China, there are three containers.
In western countries like Australia, when they’re needed in Asia, empty container has been stacked up.
China’s container demand is so strong that exporters pay heavy premiums for empty boxes.
The money they are prepared to pay has increased to the extent that shipping carriers now gain from sending boxes without a shipment back to China rather than waiting for goods for Asia to be refilled.
The Chief Executive Officer of the Australian Logistics Council, Kirk Coningham, told nine.com.au that the world’s supply chain was under pressure.
“There are too many empty containers in Australia and they don’t have enough in Asia,” he said.
Mr Coningham said the demand started last year as China’s economy began to recover and Australia has a “ripple effect”
The WA meat marketing cooperative (WAMMCO) exports high quality lamb products to foreign markets. premium lamb products
CEO Col MacRury has said to nine.com.au that ports are faced with long delays.
“Shipping around the world is happening very slowly, with problems caused by the pandemic,” he said.
“We are having difficulties getting chilled product to our markets in adequate time to fill our shelf life in supermarkets.”
In Australia, some container parks have empty cargoes, but many are not released until the planned cargo returns the cargo.
While demand for containerized agricultural products in Asia is strong, many exporters and packing plants have difficulties finding boxes.
The effect of the cargo shortage in containers is worse because of the air cargo crash.
In general, air freight companies buy unused ability to move high-end goods in the hold of cargoes on passenger aircraft.
The coronavirus pandemic, however, and subsequent restrictions on international travel, have led to a decline in passenger services, adding pressure on the sea containerized goods market.