As the sea-freight industry continues to battle box availability shortfalls due to rampant port congestion, shipper-owned containers (SOCs) are finding more traction among freight forwarders.
This is despite SOCs being a more complex option compared with conventional containerisation, or carrier-owned containers (COCs).
According to research done by Container xChange in Hamburg, shippers are increasingly opting for SOCs.
Studies it conducted in changing freight behaviour, showed that 18% of respondents were willing to go the SOC route – a figure that doubled since 2020.
To put that leap from 9% to 18% into perspective, consider that, prior to the Covid-19 outbreak, only about 3% of respondents put up their hands when asked if they would use SOCs.
In other words, since 2019, shippers prepared to use SOCs, despite complexity and costing issues, have gone from 3% to 18%, a marked increase that underpins the growing desperation of shippers seeking alternatives to COC constraints.
The unavailability of conventional containers is also not easing, although Covid’s steely grip on global freight movements appears to be easing now that the virus seems to be fizzling out.
Last week Maersk, the world’s second-largest carrier in capacity, said port-side lags had become such a nagging norm during the pandemic that it had no option other than amending sailing schedules.
It said delays on certain services, especially linking the Far East with Europe, had extended departures delays by at least a week.
Such is the waiting time in Northern Europe that 12.4% of the world’s commercial fleet is said to be snarled up in bottlenecking (read related report: https://tinyurl.com/4h8jtkpt).
Little wonder then that agents were increasingly warming to the idea of SOCs, Supply Chain Dive reported.
The publication quoted Container xChange CEO, Christian Roeloffs, saying: “The rise in awareness for SOCs shows that industry participants are responding to the supply-chain pressures by diversifying their sourcing strategy.”
It remains to be seen, though, whether SOC momentum will continue, given Russia’s warmongering in Eastern Europe.
Some might say the issues aren’t related but investor sentiment started seeking refuge in safer havens the moment bombs started raining down on Ukraine.
With the chaos in Ukraine now clearly at full tilt, risk-averse behaviour will most likely spill over to the shipping industry.
