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Division
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Investment and Export
PO Box 7970
Madison, WI 53707-7970
USA
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Vol.
7 #5, May 2008
Container Shortage
Just a few years ago there were reports of North America being awash
with empty shipping containers begging for cargo to make the return
trip across the Pacific to Asia. Now, just the opposite is
occurring. Many U.S. exporters are enjoying record international
orders, but are having difficulties finding containers for those export
sales. Standard containers which suppliers previously could get
in a week or less, now can take four weeks or longer to locate. Lead
times on refrigerated containers for perishable goods are extended
further – as much as 6-8 weeks.
Philip Damas, the head of container research at Drewry Shipping Consultants in London was quoted in April 10 issue of the Wall Street Journal
saying, "There are some places, particularly in the Midwest, where
there's a complete lack of containers." Companies that prided
themselves on developing “just-in-time” delivery strategies
are now finding that they have to schedule shipments much further in
advance or maintain larger inventories in strategic warehouses.
For years, the United States imported large quantities of consumer
goods such as clothing and personal electronics from Asia that were
packed in shipping containers. Far less was expected to flow the
other way. Many shipping lines have subsequently shifted
container capacity away from the United States. Increased trade
among Asian nations has meant that many containers are among Asian
ports and not crossing the Pacific. Cutbacks by U.S. consumers
have slowed the growth of imports, meaning that fewer shipping
containers are reaching North America’s coast, and even fewer are
making it into the interior where large volumes of U.S. exports are
being produced. Also, many of the containers used for shipping military
supplies to Iraq are remaining there empty or are being scrapped for
the metal since the region produces few exports suitable for
containerization.
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