No Relief: Global Container Shortage Likely to Last until 2022
Many months after the container shortage first emerged, how bad does the problem remain?
Equipment leasing companies are in a good position to answer that. These companies order containers from the very few Chinese manufacturers that build them and lease the boxes to shipping lines, which also order from factories directly.
Two of the top public leasing companies – Triton International and CAI International – commented on container availability as they reported Q1 2021 results.
Generally speaking, the more profitable the market conditions for container lessors, the tighter box capacity is and the more cargo shippers must pay liners for transport. The bad news for importers and exporters: Equipment lessors see smooth sailing ahead, likely into 2022.
Since the onset of the Covid pandemic, many businesses have closed, some have barely survived and are limping on, and some weren’t affected at all. Some have managed to capitalize on the crisis. Unfortunately due to the nature of our business where social distancing isn’t the norm nor can be maintained in a lengthy manner, we are in the category of business that has been detrimentally affected – either closed down temporarily, permanently or just managing to stay afloat. It’s been over 14 months now and no one can be expected to bare the economic burden for that long. But some of us have; and also have hope that the crisis will end soon, that we’ll recover somewhat and others who have closed, can reopen or find even more lucrative endeavours. Compounding the issue, is that some local suppliers have closed down and those who remain have run out of stock. Bushido has been filling these requirements taking up this slack.
Our suppliers too are faced with these challenges and have shut down when their governments required them to do so. Production has resumed even though it is not at full capacity. Another challenge we face is the lack of containers and shippers able to deliver our goods. We have been waiting on some goods for over 60 days now without securing space. Not only that, due to the demand, shippers have escalated their prices and choose the most lucrative options to ship freight. We believe that there is a lack of ethics as these freight companies capitalize on the demand. This unfortunately affects most supply industries. This not only hikes up prices but causes a domino effect that in the end is shared from the manufacturer to the supplier, onto the end user.
Fortunately for Bushido, with resilience, and perseverance and acknowledging grace, coupled with a long history of relationship with strong and understanding and supporting customers we are still able to participate in this industry.
We will maintain our best to get supplies and substitute where we can. Bushido is in business and we are working hard to get our products to Canada. Please bare with us through these trying times. The repercussion of the Covid restrictions and shutdowns has affected all of our lives from family loss, health and economic and job losses. We continue to wish you and your business and your families good outcomes ongoing.
Bushido Enterprises Ltd.