The container market appears to have gone from facing a chronic shortage of equipment to having an adequate supply of boxes in just two short blogs.
Just last week we were lamenting the dire shortages of containers frustrating shippers and driving up prices. Then late last week, Maersk issued a surprising announcement that turned our theory on its head. The Danish giant said it was delaying its record-breaking peak season surcharge for 15 days.
Instead of flaying customers from 15 July for US$750 per TEU, $1,000 per FEU and $1,200 per high-cube container on westbound services to Northern Europe, the carrier will begin the surcharge from August 1.
No reason was given for the delay and Maersk backed into the relative safety of a “quiet period” before its interim results are announced to the Danish exchange.
The reasoning behind the levy was that Maersk would have to bring vessels in from lay-up to reposition empty containers to Asia, adding to the line’s costs. It has also boosted manufacturing of boxes.
So why the delay in imposing the peak season surcharge?
It doesn’t take a descendant of Einstein to work out what is going on. Either demand is not as strong as predicted, or containers are not in as short supply as predicted. And let’s face it, carriers are no Paul the Octopus when it comes to making market predictions.
There was a furious reaction from shippers to the Maersk peak season surcharge and with forwarders reporting no problems securing boxes, the line has obviously taken a step back to reassess the situation.
It seems Maersk and the other carriers have been so successful in repositioning empty containers to Asia that they have managed to shoot their surcharge in the foot.
Just look at the figures provided by the Port of Los Angeles. Never mind the 32 percent increase in June imports, it is the 53 percent increase in the number of empties handled last month that tells the story.
A record number of boxes are being returned to Asia’s ports, greatly relieving the equipment shortage.
Maersk may still impose its peak season surcharge on August 1, but don’t be surprised if it is greatly reduced from the chart-topping levels announced in June.