A shortage of containers in Asia has caused the price of used containers to skyrocket

A shortage of shipping containers in Asia has caused the price of used containers to soar, especially in China, according to Container xChange.

Container lines canceled trans-pacific trade trips and imports from Asia to Europe surged in July and August as the blockade eased, making it difficult for them to ship containers back to Asia. As a result, shipping lines are facing a shortage of export containers at Asian loading ports.

Container xChange's Container availability index, which measures availability at the Port of Qingdao in China, has fallen from 0.7 in week 36 to 0.35 now -- a drop below 0.5 indicates a shortage of containers. On the other hand, containers are piling up at the destination port, with the availability of 40-foot containers at the Port of Los Angeles at 0.57 on September 11, compared with 0.11 in week 35.

One solution is to buy used containers, but as Container xChange shows, this has become an increasingly expensive proposition, with the average price of containers produced at all Chinese ports between 2000 and 2005 being $1,744, with peak prices much higher.

"Compared to the average, prices are up 115 percent in week 28, 90 percent in week 32 and 78 percent in week 35," Container xChange said. "We're seeing sellers asking for more because there's less Container supply in Asia."

Used containers are much cheaper in European ports, but the need to relocate to Asia means they do not address the immediate availability issues or the additional cost of shipping containers back to Asia.

Containers produced between 2000 and 2005 cost an average of $1,262 in Rotterdam, $1,337 in Antwerp and $1,384 in Hamburg.

Container shortages in Asia look set to continue. "Strong U.S. demand for e-commerce goods and medical supplies, such as personal protective equipment, will continue through October and possibly beyond," Container xChange said. Carriers are now cutting back on the extra free days that big retailers usually offer for 20 or more, and reserving three days for free storage."