Shortage of Shipping Containers in the U.S.

 

Supply Chain Crisis

Supply chain crisis is a complicated global supply network and logistics processes that are being simultaneously strained at many different points. Some supply chains are experiencing enormous surges in demand, others are experiencing reductions of capacity due to covid shutdowns or staffing issues and still, others are failing altogether due to a lack of components or raw materials. This causes shortages, long production & distribution lead times, and ultimately, stock-outs for consumers.

Pandemic impact on shipping containers shortage

COVID-19 (corona virus disease 2019) is an infectious disease. It has spread globally since its very first appearance in China, resulting in an ongoing pandemic. Globally, the pandemic has caused significant social and economic disruption, including strict social distancing, travel restrictions, and one of the most severe global slowdowns since the Great Depression.

As different parts of the world recovered from the pandemic late last year, there was a buying frenzy, resulting in critical container shortages. This resulted in massive delays in the shipment of goods from China to Europe and the United States, as well as price increases for businesses and consumers. Due to this, there were shortages, long production & distribution lead times, and eventually, consumers ran out of products.

Reasons behind container shortages

A container chassis is a specially designed trailer that can be used to transport a shippingcontainer over the road. For a terminal to function properly it is essential to have enough chassis equipment; otherwise, trains cannot be unloaded and turned back toward their origin.

Over the past six months, the backlog of delayed shipping containers at train stations, patios, and rails across the United States has grown dramatically, and chassis deterioration has reached nearly zero. All major cities of the United States are a major problem hindering the transportation of imported goods, or export goods. Major changes may be required to resolve the current crisis and, if possible, to avoid it in the future.

American chassis are starting to roll off the assembly lines, but they are more expensive than pre-tariff Chinese chassis, raising the price of everything that travels by chassis. Tariffs have contributed to a chassis shortage in the midst of an import boom, which is one of the reasons why American ports are congested.

Truck drivers are critical to the shipping industry in the United States. They transport goods between ports, warehouses, rail yards, distribution centers, and retailers, carrying more than 70% of all cargo traveling across the country. However, the country may be short as many as 80,000 drivers right now. Many Americans decided to leave jobs that required frequent public contact. This resulted in a labor shortage to unload ships, transport goods, and staff retail stores.

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