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DELO.UA comments: What impact does the “container crisis” have on the prices and who benefits from it?

With the beginning of the coronavirus pandemic, manufacturers and retailers became hostages to the sea shipping collapse, as the cost of the sea transportation grew several times due to the lack of containers. 

Europe suffered less due to the use of road and railway transportation as an alternative, the USA was hit harder by the crisis. 

This was the case in 2020, but the container balance and commodity turnover have levelled out by now. However, the freight cost has not declined, but it increases. 

This is of benefit to sea transportation companies and ship owners, Viktor Shevchenko, CEO of the international logistics company ZAMMLER, says: 

“While many of them operated at a loss before the crisis, they started making profits after the beginning of the crisis. Sea lines will finish the year with a profit of USD 220 million. Sea transportation companies which allegedly transport empty containers at a loss made a decent profit within two years,” Mr. Shevchenko said. 

At the same time, there is the flip side of the coin. The manufacturers and retailers are forced to raise the prices for their products due to the increase of delivery cost, Viktor Shevchenko, the co-owner of ZAMMLER GROUP says. 

The cost of some goods may increase by 20% until Christmas and New Year. Manufacturers are searching for alternative suppliers, other than China. 

“China sought to have the manufacturers build their plants at the Chinese territory and order goods from China due to low cost. However, such conditions are less favourable now. Due to the above, some manufacturers have already transferred their plants to India and Vietnam. These are countries which are now developing in accordance with the Chinese scenario, and logistics is far less complicated there,” Viktor Shevchenko explained. 

The complete text of the article can be found here. 

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