The ongoing escalation of the Red Sea crisis continues to impact Asia-Europe shipping, raising concerns about a potential return to container shortages. Despite these challenges, Chinese logistics companies and experts assert that the nation’s ocean-going supply chain remains resilient.
Apprehensions about shortages are increasing, with an analysis from the Baltic Exchange on January 11 indicating that approximately 780,000 standard containers less than expected will reach Asia just before the Chinese Lunar New Year in mid-February this year.
During the pandemic, a shortage of empty containers significantly disrupted global trade flows. China, as the leading container manufacturer globally, increased output to meet demand.
Despite dealing a serious blow to seaborne trade supply chains, including transshipment, and adding pressure on deliveries during a small peak holiday season for cargo from East Asia to European and American markets, the Red Sea crisis has not significantly disrupted container equilibrium across the continent. Certain cross-ocean trade routes, like the Pacific route, remain unaffected.
Operators of China-Europe cargo trains also reported no impact, with an increase in bookings observed, especially for routes departing for Germany and Spain. Each train, capable of carrying up to 60 containers, serves as a partial substitute for sea transportation.
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Source: Global Times.
