Blog Layout

What Creates Shipping Container Shortages?

Susan Nalevac • Feb 22, 2022

The supply of shipping containers, like any product, goes through its ups and downs. Sometimes, there’s a surplus. At other times, there’s a shortage. But what creates shipping container shortages? It’s a complicated and nuanced problem, but here are some reasons why there could be a shortage of containers in specific markets.

Supply and Demand Fluctuations

The fluctuations of supply and demand in the global economy can affect shipping containers in many ways. A global pandemic, for example, can upend international trade, which can, in turn, affect the supply of shipping containers worldwide.

The Bottleneck Problem

The shortages of containers can come from a trade imbalance between continents and major markets. For instance, if North American ports had workflow disruptions and increased shipping traffic, that would cause a bottleneck at ports. Other markets would send shipping containers to North America but not get them back fast enough.

This bottleneck would lead to a shortage of containers for some markets and an overflow of containers in others, as ports would struggle to work through the influx of ships and containers. Ideally, there would be an easy flow and balance of containers in and out of ports. But, as we all know, things are rarely ideal.

Low Container Production

Another potential cause for a shortage of shipping containers is a dip in the production of containers. A dip can arise for several reasons. COVID-19 is one of the most recent significant ones. However, it is interesting to note that container production dropped below its average even before the pandemic and lockdowns of 2020. Production of containers dropped dramatically in 2020, as international trade slowed considerably.

Shipping containers are essential for global trade, and their supply can shift the delicate balance of global trade. Now you know what creates shipping container shortages and why it may be harder to find shipping containers in some markets than others. However, if you want to buy steel shipping and storage containers , then you can always turn to Container Management, Inc. to meet your needs. Call us today.

By Susan Nalevac 06 May, 2024
Are you looking to buy a shipping container but can’t decide between new or used ? Do you want to better understand the advantages and disadvantages of choosing either option? Let us help with our overview of the pros and cons of buying your shipping containers both new and used! Our guide describes what to consider when deciding between a new or used shipping container , and the benefits that each unit brings to the table. We address which choice provides better value, and the considerations for each type of container. Considerations for a New Shipping Container Definition of a NEW Shipping Container: When considering a new shipping container, one important point to keep in mind is that shipping containers are manufactured overseas. Therefore, “NEW” shipping containers for sale in the United States have had a one-way trip from overseas, from a port near its manufacturing facility to a U.S. port. In other words, these cargo containers were built overseas, loaded with products bound for the United States, and then unloaded here. This means that NEW shipping containers for sale have had a one-way, loaded move from the overseas manufacturer to the United States. A NEW shipping container is also called a “one-way” or, more commonly, a “one-trip” container. In shorthand, these may be abbreviated as “1-trip” or “1-T.” Better Condition/Appearance The primary appeal of a new container—otherwise known as a “one-trip” container—is that you’re getting a unit in its best possible condition. One consideration when buying new or used shipping containers is the appearance—do you want a shiny new unit, or is it OK if it looks a little weatherworn? If the appearance of the steel container is as significant as its utility to you, a one-trip unit is likely your best option. Longevity Steel shipping containers are built to last decades under brutal conditions crisscrossing the world’s oceans. When you buy a new container, you’re getting a unit in its ideal state. You can be certain it’ll last for the long haul. Used containers can still last for years and even decades with proper maintenance. But if long-term durability is essential for your container, one trip is the way to go. Immediately Ready for Use Are you on a tight schedule and need a container ready for use right now? Your best bet is a one-trip unit that’s had only a one-way loaded move from the manufacturer in Asia and is in ideal condition. When a new container is delivered to you, it’s ready to go immediately with little to no maintenance or repairs needed. Appropriate Use of a NEW Shipping Container All new containers will be suitable for both storage or export. They will also be ready for modification if you choose to repurpose it. Considerations for a Used Shipping Container Definition of a Used Shipping Container: When deciding on the purchase of a used shipping container, you must consider the grade. Licensed surveyors assign used shipping containers to one of three shipping container grades : USED – Cargo-Worthy (also called CW) USED – Wind and Watertight (also called WWT) USED – “As Is” USED – Cargo-Worthy Shipping Containers “USED – Cargo-Worthy” (CW) shipping containers are the best quality USED shipping containers available. Some people refer to Cargo-Worthy containers as seaworthy containers or ocean shipping containers . A “Cargo-Worthy” designation signifies that a qualified shipping container surveyor has inspected the container and certified it as cargo-worthy. You can load a cargo-worthy container for domestic or export use. In other words, the USED – Cargo-Worthy shipping container meets all U.S. domestic and overseas shipping requirements. However, be aware that the shipping container grade does NOT assess the cosmetic appearance of the container. Instead, a licensed surveyor assesses the container for factors related to its structural integrity. (See the 7-Point Container Ocean Certification Checklist .) Therefore, a certified USED – Cargo-Worthy container is structurally sound. It also meets the manufacturer's original factory specifications. If you want to ship materials or products overseas in a used shipping container, it must be Cargo-Worthy. Appropriate Use of a USED – Cargo-Worthy Shipping Container Your USED – Cargo-Worthy container will be suitable for storage or export, or you may repurpose it to meet your unique personal or business needs . USED – Wind & Watertight Shipping Containers Container Management, Inc. guarantees that your USED – Wind and Watertight shipping container will be delivered: Wind and watertight Including a floor without any holes (usually a laminated, marine-grade plywood with steel cross beams underneath) Featuring fully functioning doors Appropriate Use of a USED – Wind and Watertight Shipping Container Your USED – Wind and Watertight container will be suitable for all uses on land: as storage containers or repurposed for innovative uses . USED – “As Is” Shipping Containers At Container Management, Inc., we sell only NEW shipping containers and the top two grades of USED shipping containers: USED – Cargo-Worthy USED – Wind and Watertight We NEVER sell the third grade of USED shipping containers: “As Is.” That’s because we want our customers to appreciate our value and service. We won’t sell you “as is” shipping containers because we deem their inferior quality poor, unpredictable, and unacceptable. Pros of Buying Used Shipping Containers There are many advantages to choosing a used shipping container, but the primary benefits are affordability, durability, and sustainability. More Affordable The primary benefit many owners cite for a used shipping container is that it’s more affordable than the alternative. For many, the difference in condition or appearance between a new or used container is negligible or irrelevant, so why not go easy on your budget and opt for the used unit? Durability A used container may not last as long as a one-trip unit, but it will still serve you well for storage or other purposes for years and even decades to come. If a used container is maintained and cared for properly, there’s every reason to expect it to last at least another 30 to 50 years after purchase. Promotes Sustainability Do you love sustainability and making what’s old new again? You can do just that with a used shipping container! After so many years, a container may no longer be graded suitable for export transport, but it still has a lifetime of utility for storage or other purposes. Whether it’s a shipping container, cars, furniture, or practically anything else, the used option will always be the more environmentally friendly choice. Used shipping containers are still very capable and can get the job done. By deciding on a used container, you use the resources on hand instead of spending time, energy, and materials to create new units. Cons of Buying Used Shipping Containers There are definitely fewer cons compared to the pros of purchasing used shipping containers. The primary negative of a used shipping container is that it has more wear and tear than a new container. Wear & Tear The main concern with a used container is that buyers aren’t getting a unit in its prime condition. While a used container probably won’t last as long as a new one, it can still last many years, and even decades, which serves its intended purpose for most buyers. Plus, our thorough inspection and grading process ensures that the used container you purchase from us is still more than capable of serving your specific storage needs! Conclusion: Now that you understand the pros and cons of buying new and used shipping containers, are you ready to decide? At Container Management, Inc., we have a wide assortment of shipping containers for sale in over 32 depot sites across the country. Contact us to get your container today!
Safety Benefits Shipping Containers Offer Construction Sites
By Susan Nalevac 06 Jun, 2023
Construction sites contain potential safety hazards that shipping and storage containers can help manage. Here are some safety benefits of shipping containers.
Certification of Shipping Containers for Export
By Susan Nalevac 31 May, 2023
What does a shipping container need to be certified for export? Find the answer in our guide on the certification process of shipping containers for export.
More Posts
Share by: