Containers pile up overseas, but domestic is no container available.

“Containers are piling up and there’s less and less space to put them in,” Gene Seroka, executive director of the Port of Los Angeles, said at a recent news conference. “It’s just not possible for all of us to keep up with all this cargo.”

MSC ships unloaded 32,953 TEUs at one time when they arrived at APM terminal in October.

Shanghai’s Container availability index stood at 0.07 this week, still ‘short of containers’.

According to the latest HELLENIC SHIPPING NEWS, the port of Los Angeles handled more than 980,729 TEU in October, an increase of 27.3 percent compared to October 2019.

“Overall trading volumes were strong, but trade imbalances remain a concern,” Said Gene Seroka.One-way trade adds logistical challenges to the supply chain.”

But he added: “On average, out of three and a half containers imported into Los Angeles from abroad, only one container is full of American exports.”

Three and a half boxes went out and only one came back.

To ensure the smooth operation of global logistics, liner companies have to adopt unconventional container allocation strategies during the extremely difficult period.

1. Give priority to empty containers;
Some liner companies have chosen to bring empty containers back to Asia as quickly as possible.

2. Shorten the period of free use of cartons, as you all know;
Some liner companies have chosen to temporarily reduce the period of free container use in order to stimulate and speed up the flow of containers.

3. Priority boxes for key routes and long-haul base ports;
According to Flexport’s shipping Market Dynamics, since August, liner companies have given priority to deploying empty containers to China, Southeast Asia and other countries and regions to ensure the use of containers for key routes.

4. Control the container. A liner company said, “We are now very concerned about the slow return of containers. For example, some regions in Africa cannot receive goods normally, which results in the absence of return of containers. We will comprehensively evaluate the rational release of containers.”

5. Get new containers at a high cost.
“The price of a standard dry cargo container has risen from $1,600 to $2,500 since the beginning of the year,” said a liner company executive. “New orders from container factories are growing and production has been scheduled until the Spring Festival in 2021.”"In the context of an exceptional shortage of containers, liner companies are acquiring new containers at a high cost.”

Although liner companies are sparing no effort to deploy containers to meet the freight demand, but from the current situation, the shortage of containers can not be solved overnight.