Friday, October 30, 2020

Container shortage reducing Canadian exports


 

There is a global shortage of shipping containers and it’s hampering Canadian agriculture exports.


The shortage has arisen because China is catching up on its exports in the wake of a slump when it was hit by the first outbreak of COVID-19.

 

German shipping company Hapag-Lloyd announced last week that it was temporarily suspending overseas ag container shipments from North America.


 Other container lines are also curtailing containers for agriculture exports from North America.


There is a growing urgency to send empty containers back to China as soon as they are unloaded rather than waiting to fill them with agricultural goods for the backhaul, according to Canadians caught in the shortage, such as the pulse industry.


A steamship line makes about $5,000 hauling a container from China to Vancouver, but only about $1,000 on the backhaul.