Covid-19 has been spread and the number of patients has been bigger and bigger around the world since 2020. Many businesses got big influences, and shipping companies and exporters are not the exceptions to that situation.

Fortunately, some countries are recovering their businesses, and no of exporting and importing is going up. However, we are still in a difficult situation on exporting due to Covid-19, so we will describe what is happening regarding shipping.

- Shortage of Container

- Cause of the Situation

- Another Effect

【Shortage of Container】

Since August 2020, it is difficult to get container stock in Japan, so we have to extend the shipping schedule due to container shortage and also lack of vessel space many times. Sometimes we could book the vessel one month later, so we needed to plan the loading schedule of containers far in the future.

【Cause of the Situation】

The first reason is when the number of patients increasing, many countries began to lockdown, and the number of people who work at the port was restricted. Also, because some factories stopped their operations, many containers piled up at the port.

The second one is Shipping company reduced the number of shipping vessels to stable the freight because they get a loss if the vessel space is not fully booked.

The third one is from July 2020, the economic activity has gradually recovered in the world, and the factories in China restarted to operate and export at early stage. More and more exporting from China have increased, and not in other countries.

Also due to the time before Christmas in the U.S. and the time before national long holidays in China, the exporting from China has been accelerated but the containers were not returned from the U.S. because of the labor shortage.

【Another Effect】

The situations above effect the shipping cost charged by the shipping company. At the beginning of the container shortage, the freight was double or three times as high as before and also special surcharge around $1,000 was charged.

Also, it is difficult to book the containers recently, so some companies shifted to RORO vessels. Because RORO has not increased the freight too much, the bookings are concentrated, which causes the shortage of the RORO vessel's space.

We have no idea when these situations are over because it never happened before. If you live in countries other than Japan, you may not notice those situations in sea logistics, or you may get another situation. Please share with us the information of your countries' sea logistics. We hope that situation goes better soon.

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Yamada Sharyo Co., Ltd.

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