Shipping demand has experienced significant fluctuations over the past year – with very low demand in the first half of 2020 but a rapid rebound in the second half.
Strong demand for boxes, the limitations triggered by the pandemic and the Suez Canal blockage have put pressure on ports. Shipping costs have been rising since the middle of 2020. Under these circumstances, China is doing everything it can to bring them under control.
The general manager of Shanghai Universal Logistics Equipment said, “It took us six years from 2006 to 2011 to make 1 million containers. But now it’s taken us just two years to break the 5 million mark. That’s pretty fast work.”
However, even though China keeps doing its best to produce containers, the demand is still three times as much as before the COVID-19.
Freight rates are not predicted to peak until the end of next year, but should then begin cooling in the first quarter of 2023.