The container exchange platform Container xChange thinks that after the Chinese New Year, this year on February 12, the regional shortages of containers can come to an end.

The average Container Availability Index (Cax) of the platform has risen to 0,34 for twenty-foot containers and to 0,37 for forty-footers. An index of 0,5 reflects a balanced market, below that there is a shortage of containers. For Shanghai, which had to deal with an exploded export flow in the past six months, the index reached its lowest level ever at 0,13 for twenty-footers in December.

The platform says the Chinese container factories are running at full speed and that by 'aggressively repositioning' empty containers towards China, the Chinese New Year could 'become the turning point in the shortage of equipment'. After February 12, most Chinese factories will close for two weeks, so that the discharge of full containers to the seaports will decrease sharply during that period.

According to a spokesperson for Container xChange, the availability of ordinary containers in Shanghai is developing towards a normal level and in Qingdao for standard equipment the equilibrium value of 0,5 has already been reached. The supply of empty containers has also improved significantly in recent weeks in other ports such as Singapore, Nhava Sheva and Port Klang.

Research
Another important development for container shipping is the decision by the European Commission not to open an official investigation into recent services and high rates in the sector. The Brussels Directorate-General for Competition announced this in an online meeting with representatives of the European Shippers' Council (ESC) and the Clecat, the interest groups of shippers and forwarders who urged such an investigation earlier this month.

The European Commission's competition specialists have informed industry representatives that they are aware of developments in liner shipping, but say they see them as a result of the massive market demand created by the corona crisis. According to them, the Brussels guidelines do not offer the possibility to conduct an official investigation for this.

The only thing the European Commission could promise shippers and forwarders is to sit down with the US Federal Maritime Commission and the Chinese Ministry of Commerce once again. Such a tripartite meeting takes place every so often, and since the last time was in 2019, it is a good time to get together again, according to Brussels.

Alliances
The ESC and Clecat do not seem to accept the Brussels 'no' to an investigation. The two say they will now see whether there are possibilities to file an official complaint. Shipping company alliances are now the gatekeepers of international trade and play a vital role in the competitiveness of many companies. They should not misuse their privileges as they do today, ”they argue.