In today's global economic landscape, the international freight market faces numerous challenges, with container shortages emerging as a critical bottleneck affecting worldwide trade flows. This complex, multi-layered phenomenon stems from both the lingering effects of the pandemic and the intricate nature of global supply chains.
According to data from Container xChange, a global container trading platform, the shortage has become particularly acute as demand for shipper-owned containers (SOC) surges while freight forwarders capable of meeting this demand remain scarce. This situation highlights the urgent need for standardized equipment in global trade transportation networks.
Pandemic Fallout and Uneven Recovery
During the peak of the pandemic in 2020, widespread lockdowns led to critical staff shortages at ports and logistics facilities worldwide, compounded by disruptions in production and transportation that severely constrained container availability. While post-pandemic recovery has driven demand rebound, container supply has failed to keep pace in the short term.
Container xChange's research reveals that while shippers increasingly seek SOC solutions to control costs and mitigate freight rate volatility, only about 10% of SOCs successfully complete China-to-Europe shipments. This limited capacity leaves industry participants struggling to meet operational needs.
The freight forwarder shortage not only complicates container allocation but also drives up additional costs, including demurrage and detention fees. Consequently, when selecting freight partners, shippers now prioritize SOC capabilities alongside traditional freight rate considerations.
Market Leaders and Persistent Challenges
Container xChange identifies several forwarders that have demonstrated strong SOC capabilities, including Kuehne+Nagel, CEVA Logistics, Hitachi Transport Systems, Nippon Express, and Kerry Logistics. While these providers have attracted significant shipper business and alleviated some market pressure, the overall situation remains strained.
The vast majority of containers remain carrier-owned, forcing shippers to contend with exorbitant fees when securing equipment.
Lehmacher notes that shippers currently face extreme vulnerability in container procurement, particularly regarding cost control and supply chain management. Statistics show SOC usage has grown 66% since 2020 , yet shipper-owned containers still represent a negligible portion of the global fleet.
Cost Implications and Operational Impacts
This imbalance forces shippers to pay premium prices for containers, often pushing transportation costs to unsustainable levels. Lehmacher emphasizes that SOC utilization can reduce these expenses and avoid steep port demurrage and detention charges.
As shippers' control over containers diminishes, SOC adoption emerges as a potential solution. For instance, shippers using carrier-provided SOCs can significantly reduce—or even eliminate—additional fees after prolonged port stays.
Industry data shows empty containers typically return to depots within 10 days after unloading, but severe congestion can extend this period to 30 days or more , dramatically increasing demurrage costs. The U.S. Federal Maritime Commission's recent investigation into detention and demurrage billing practices at Los Angeles, Long Beach, and New York ports underscores growing concerns about these fees.
Alarmingly, over 80% of shippers report paying more than $200 per container , with 18% facing charges exceeding $500 —reflecting significant distortions in international shipping markets.
Long-Term Solutions and Strategic Shifts
The container shortage appears less a temporary disruption than a symptom of broader supply chain inflexibility. In this environment, effective SOC strategies offer shippers greater operational flexibility. Future container markets may become crucial for companies seeking competitive advantages and cost reductions in international logistics.
Ultimately, resolving container shortages will require sustained effort, particularly given ongoing global economic volatility. Shippers must prioritize SOC solutions—whether through partnerships with reliable forwarders or operational reforms enabling self-sufficiency—as critical components of international logistics strategy.
By enhancing container management capabilities and optimizing direct shipping processes, shippers can reduce operational risks while maintaining business agility in an unpredictable economic climate. With container supplies constrained and freight rates soaring, effective resource management and cost containment will remain paramount challenges for both shippers and forwarders in the coming years.
