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A very happy new year to all our customers and contacts in the industry! We thank you for your continued support and business last year. We very much look forward to the next 12 months of supplying our shipping containers to both new and existing customers of ours.
January 2024 brings new challenges and obstacles for the shipping container industry. The rising unrest in the straights of the Red Sea region is going to have an inevitable ‘knock on’ effect on lead times and availability of equipment in the UK.
If we cast our minds back to when Evergreens ‘Evergiven’ container ship, which blocked the Suez canal in March 2021, this too had a significant impact on global supply chains and the availability of containers. Prices surged and stock levels were depleted.
Major container shipping line Maersk announced on Friday that it will divert all vessels around the Southern tip of Africa, instead of using the Red Sea and the Suez Canal for the ‘foreseeable future’. Other shipping lines are due to follow suit.
Sending vessels around the Cape adds approx. 20 days to the transit time between China and the UK. A backlogs of vessels means delays will be inevitable with the amount of ships queuing up in the Red Sea to pass through the Suez Canal. This has knock on effect with the ports, as vessels are missing their birthing slots. Blank sailings from China are also increasing, which adds to this ‘knock on effect’.
Freight Rates increase significantly / Shipping lines to apply PSS
With 158 vessels being diverted from the red sea region, with approximately $105 Billion dollars’ worth of ocean freight onboard, freight rates have soared, with forecasts estimating it to reach $10,000 USD for a loaded 40ft container to reach the UK from China.
Shipping lines have also imposed a ‘Peak Season Surcharge’ to freighted containers. This will have an impact on pricing for any container that has to be freighted over, which includes ‘specials’ such as multidoor units and factory built 10ft containers.
What does this mean?
- Certain to see a rise in pricing of new 10ft containers and ‘mini sets’ (10fts and 8fts).
- Certain to see a rise in pricing of multidoors / special units that require empty freighting over to UK.
- Certain to see a rise in pricing of new equipment (such as 20ft new/ 40ft new) in the UK over the coming few months.
- Lead times will increase in the short term, and some equipment types will take longer to move (such as openside containers and 20ft high cubes / 20ft double doors.
Conclusion
Containers are still on the move & this will continue to be the case. Lead times might increase for a while on some equipment, but rest assured, we as a business are doing all we can to keep our new build shipping containers on the move from China, ensuring it reaches our nationwide depots here in the UK.
Boxtor deals directly with our Chinese factories, and directly with the shipping lines, so we can keep our customers updated on the movement of their container orders.
We have healthy stock levels of both NEW (1 trip) and USED shipping containers of all types and sizes, on the ground here in the UK. If you do require a shipping container (s), make the most of the current high stock availability by getting in touch with our team.
SALES ENQUIRIES: INFO@BOXTOR.COM
CALL OUR TEAM ON: 01371 811 111
Many thanks for your kind attention.
Dominic Coy, Director of Operations @ BOXTOR LTD.
