Carrier reacts proactively to container shortages

The Mediterranean Shipping
Company (MSC) closely
monitors local supply and
demand, deploying larger
vessels on the South African
trade routes where needed as
part of its strategy to deal with
container supply shortages,
according to southern African
national commercial director,
Glenn Delve.
“This of course comes at a
large cost, which is the reason
ocean freight rates have to
increase
from the
sub-economic
levels of past
years.”
He told
FTW that
there was
a global
shortage of
containers,
particularly
20-foot units,
partly due
to the
demise of
Korea’s
Hanjin Shipping which
has seen thousands of
containers being taken
out of circulation.
The shortage
had been further
compounded by the economic
crisis experienced by the liner
container trade over the past
nine years, resulting in fewer
container builds, said Delve.
And the shipping equipment
shortage is
unlikely to
change “anytime
soon” in South
Africa and
internationally,
especially with
the uptick in
commodity
volumes and
prices combined
with the changes
and ongoing
challenges in the
global economic
landscape.
Repositioning
costs were also a burden for
MSC, added Delve. “Although
we limit this due to our cargo
mix and ability to have large
base cargoes,” he said.
INSERT
The shipping
equipment shortage
is unlikely to change
anytime soon in
South Africa and
internationally.
– GLENN DELVE