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Container depots in China are full and having to turn away new customers, following a slowdown in exports.
Container xChange CEO Christian Roeloffs said: “We hear from many customers that the demand for containers is still there, just that the supply is overshooting the demand.
« Due to this, we see ripple effects, such as depots working at maximum capacity and not being able to accept new clients.”
Container xChange’s latest report suggests China’s container depots are working at 90% utilization, adding: “Oversupply makes it harder for the depots to move boxes. And because depots make money by moving these boxes, as opposed to storing them, the current circumstances are rendering the depots inefficient in both operations as well as revenue generation.”
The increasing number of idle containers at terminals does not only mean ports are getting congested, but repositioning empty containers has become more expensive and inconvenient, making it difficult for the NVOCCs and shipping lines to open new markets globally.
Read more in an article from The Loadstar.