Record demand for container transport in 2024
In 2024, the global container shipping market is experiencing unprecedented demand growth. According to the latest data, a record 15.94 million TEUs (twenty-foot equivalent units) were transported in May 2024, surpassing the previous record set in May 2021. This increase is attributed to several factors, including severe port congestion and rising global consumer demand.
Main Reasons for Demand Growth
One of the main reasons for the sharp increase in demand for container shipping is the congestion of major global ports such as Los Angeles, Shanghai, and Rotterdam. Waiting times for ship berthing have increased by 20%, significantly slowing down supply chains. Other factors include global supply chain disruptions, economic recovery from the Covid-19 pandemic, and the boom in e-commerce.
Impact on Shipping Costs
The demand for container shipping has led to a significant rise in shipping costs. The average cost of shipping a 40-foot container has more than tripled compared to pre-pandemic levels. For example, the cost of shipping a container from China to the west coast of the USA reached up to $8,000 in May 2024, whereas at the beginning of 2020, it was $1,500.
Industry Response
The shipping industry is responding to these challenges by investing in larger and more efficient vessels. Companies like Maersk are ordering fleets of mega-ships with capacities over 24,000 TEUs to increase capacity and reduce unit costs. Significant investments are also being made in modernizing port infrastructure, such as the $1.5 billion expansion at the Port of Long Beach.
Technological Advances
The adoption of advanced technologies, such as automation, artificial intelligence, and blockchain, is helping to streamline operations. Automated ports, such as the one in Rotterdam, are leading to shorter turnaround times and increased efficiency.
Future Prospects
Despite the current challenges, the container shipping industry remains optimistic about the future. The International Maritime Organization (IMO) forecasts that global maritime trade will grow at an average rate of 3.4% per year over the next five years. This growth will be driven by continued economic recovery, increased trade volumes, and sustained investment in transportation and port infrastructure.
SHIPPING OF MARINE CONTAINERS – HZ CONTAINERS
Other container news...
Concrete footings for the container
How to correctly prepare the foundations for a shipping container before its delivery? What are the options? What are concrete footings under the container, how many are needed, how deep should they be and other questions? You will learn all this in our article on how to underlay a shipping container.
History of shipping containers
What is the history of shipping containers anyway? Who came up with this idea of creating a strong shipping container that can withstand harsh sea conditions? What are shipping containers used for before and today, and what is their future?
Garage from a shipping container
Shipping container garage tailored to your needs. As a standard, a shipping container garage is made from a 20- or 40-foot storage shipping container. A mobile garage is a great and cheap alternative to a classic brick garage. More in the article
Container fire safety
The fire safety and resistance of the shipping container is an interesting topic, which is informed by a lot of customers mainly thinking about the shipping container as an alternative for housing, cottages, sales stands, etc. You will find out how it is with ensuring safety, fire protection, documentation, etc. in the article