{"id":4871,"date":"2021-05-24T16:57:03","date_gmt":"2021-05-24T16:57:03","guid":{"rendered":"https:\/\/siships.com\/?p=4871"},"modified":"2021-05-24T16:57:03","modified_gmt":"2021-05-24T16:57:03","slug":"china-to-blame-for-sudden-container-shortage-2","status":"publish","type":"post","link":"https:\/\/siships.com\/blog\/china-to-blame-for-sudden-container-shortage-2\/","title":{"rendered":"Is China to Blame for Sudden Container Shortage?"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">As the US Faces a Shortage in Shipping Containers, we are Forced to Wonder if China is to Blame.\u00a0<\/span><\/h2>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">This container shortage has been a prevalent issue for months at US ports. <a href=\"https:\/\/www.fmc.gov\/\" target=\"_blank\" rel=\"noopener\">Federal Maritime Commissioner<\/a> Carl Bentzel stated that he believes, \u201cChina may be manipulating the market to control the availability of containers.\u201d<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">\u201cI am concerned that this equipment is controlled by a state-owned enterprise and that we\u2019re completely reliant, and I have questions about whether or not there\u2019s been market manipulation of what is potentially a monopoly,\u201d Bentzel said on Wednesday.<\/span><\/p>\n<h3 style=\"text-align: left;\">Shipping Demands Continue to Grow<\/h3>\n<p><img loading=\"lazy\" class=\"wp-image-4864 alignright\" src=\"http:\/\/siships.com\/blog\/wp-content\/uploads\/2021\/05\/SiSHips-image.png\" alt=\"Container shortage \" width=\"482\" height=\"316\" srcset=\"https:\/\/siships.com\/blog\/wp-content\/uploads\/2021\/05\/SiSHips-image.png 700w, https:\/\/siships.com\/blog\/wp-content\/uploads\/2021\/05\/SiSHips-image-300x197.png 300w\" sizes=\"(max-width: 482px) 100vw, 482px\" \/><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">This container shortage comes at a bad time as shipping demands continue to grow. With China in full control, there are fears that this issue will not be solved quickly. Equipment leasing companies \u2013 which purchase containers from the Chinese manufacturers and then lease them out to shipping lines \u2013 are prepared for a very profitable market well into 2022. With fewer boxes available, shippers are going to be forced to pay higher rates to move their cargo.\u00a0<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">On top of higher rates, it is projected that shipping times from Asia are going to remain slower than usual.\u00a0<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">\u201cWe\u2019re understanding from the ocean shipping lines that they\u2019re waiting two weeks in China to get cargo containers, and we\u2019re seeing delays of up to two weeks on intermodal movements going through railroad terminals as [U.S. railroads] are also grappling with challenges providing the equipment that is necessary to move,\u201d Bentzel said.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Previously only estimated to take 33 days, transit from Bejing to Chicago has now increased to roughly 65 days. This delay will cause disruptions in shipping times across the world.\u00a0<\/span><\/p>\n<h3>Legal Allegations Against Shipping Lines Arise<\/h3>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Along with the operational challenges being faced, legal issues have been raised. Major container line shipping policies are being investigated due to recent allegations of favoring the Chinese market.\u00a0<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">These allegations state that certain carriers are refusing to serve U.S. exporters, as it is more profitable for them to immediately send empty containers back to China to be filled with U.S. imports, rather than allowing them to be used for U.S. exporters.\u00a0<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">\u201cI anticipate that we\u2019re moving closer towards enforcement proceedings or policy suggestions to help better serve the shipping public,\u201d Bentzel said.\u00a0<\/span><\/p>\n<h3>How SiShips Can Help<\/h3>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">With so many <a href=\"https:\/\/siships.com\/ship-congestion-continues\/\" target=\"_blank\" rel=\"noopener\">unforeseen factors<\/a> impacting freight rates, it can be difficult to know if you\u2019re getting the best price. With SiShips software, you can get instant access to quote options. This means you can spend less time stressing over finding the best price and more time growing your margins.\u00a0<\/span><\/p>\n<hr \/>\n<h4 style=\"text-align: center;\"><b>To learn more about SiShips, or to view a demo of our software,\u00a0<\/b><a href=\"https:\/\/siships.com\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\"><b>contact us<\/b><\/a><b>\u00a0today.<\/b><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>As the US Faces a Shortage in Shipping Containers, we are Forced to Wonder if China is to Blame.\u00a0 This container shortage has been a prevalent issue for months at [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":4863,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[164,163,165],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.5.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is China to Blame for Sudden Container Shortage? 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