Before the Red Sea crisis, there was an oversupply of shipping containers, but since the crisis started voyages from Asia to US and European markets have got extended, transforming the oversupply into shortage. This year is expected to record one of the highest production of containers with manufacturers reporting to be completely booked till October. In July alone Chinese manufacturers are said to have produced about 850,000 teus of both dry and reefer containers. The growing demand for new containers can be gauged from the fact that in the first half of 2024 about 1.5 million teus were introduced into the market, as compared to 1,25,000 teus manufactured during the first half of 2023.
Growing exports from Asia to Europe and the US markets as retailers try to stock for the upcoming Christmas and thanks giving season, coupled with the growing congestion at the transshipment hubs is further escalating the demand for empty containers. For instance, Hapag Lloyd had spent around $500,000 this year on new containers, which is among the largest orders the shipping line had ever placed.
