xChange: Empty Containers Piling Up in Shanghai

containersIllustration; Image Courtesy: Pixabay under CC0 Creative Commons license

Empty containers are piling up in Shanghai, the world’s biggest port, according to the data from xChange, a Germany-based startup focusing on the repositioning of containers.

“The Container Availability Index shows relatively high values for 40 High Cube containers (0.58), 40 Dry Cargo containers (0.46) and 20 Dry Cargo containers (0.62),” xChange said commenting on the impact of coronavirus on container availability.

As explained, every number above 0.5 indicates a surplus of equipment.

“Looking back at the last two years, we can see container availability growing by 10% from 2019 and by even 17,7% from 2018. However, the container availability forecast shows similar values for 40 HCs (0.55), 40DCs (0.17) and 20DCS (0.55) Qingdao – indicating  small deficit of containers … maybe because companies are still trying to get their cargo out of China from a port, further away from Wuhan?” the company continued.

Events like virus outbreaks often have a huge impact on shipping and container logistics.

“Downsides from decreased vessel demand far outweigh positives from fleet inefficiencies, particularly in cases when an epidemic epicentre is China. For shipping lines, such events lower utilization rates and result in higher costs on routes as most companies are concerned that the potential inability for Chinese employees to work at mills, refineries, factories and terminals due to quarantine situation. The first sign of that is that the Chinese government already expanded the New Year holidays by 3 days,” xChange added.

The coronavirus outbreak, stemming from the inland city, Wuhan, Hubei province, has spread to some of China’s major port cities such as Shanghai, Guangzhou, Shenzhen, and Tianjin. The virus outbreak coincides with the Chinese New Year in the last week of January when large population movements from China are expected.

As such, additional cases have been identified in a growing number of countries internationally such as South Korea, Japan, Taiwan, Thailand, and Singapore as well as one case in the United States.

Over 2,800 cases of coronavirus have been reported so far in China, and the death toll has risen to 80 people, the Shanghai List reports citing the country’s officials.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2020 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Eastern Mediterranean Offshore Conference and Exhibition (EMC) 2020

EMC 2020 conference will arm delegates with technical and commercial knowledge to capitalise…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >