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Explained: container shortages

Friday, December 11, 2020

Due to Covid-19, we are globally experiencing a container shortage that has great consequences for manufacturers, trading companies and retail business. This problem started, when many countries entered lockdown and economical activities decreased. Containers where stopped at port, and the amount of laborers handling the cargo was reduced.

Container imbalance

This all resulted in a limited movement in cargo, which caused shipping lines to reduce the number of ships to stabilize costs. This created a container imbalance problem. Once a country receives containers full of supplies, they have to send the containers back. But shipping companies don’t want to bear the costs of shipping empty containers. This is why at some places, there is a surplus of containers, and in other places there are not enough of them.

Due to many shippers and importers want their cargo shipped anyway, they push the freight forwards to prioritize their cargo, which is creating a situation in which container freight cost is dramatically increasing. This will be reflected in the landed cost of products. (this, even despite the favorable USD exchange rate vs €)

What does this mean for you?

At Beagley Copperman we are continuously monitoring the situation and prioritizing shipments in order to manage stocks in the most efficient way.

However, please be aware that shortages of products might occur. Please know that we do our outmost to service you in the best way possible, but secure your stocks on time to avoid items to be sold out.


Do you have more questions about this subject? Please contact our sales representatives at (+31) 888 880 288. 

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