Shipping containers stranded in America and Europe frustrate Chinese exporters

'Containers stuck in America and Europe'

The pandemic, still rampant in Europe and America, has contributed to the shortage as shipping containers are not returning to China due to drastic reduction of China's imports, said Li Qianmin, general manager of Shanghai Universal Logistics Equipment, the world's second-largest container manufacturer, which currently produces about 5,000 transmission extension units (TEUs) of shipping containers.

"The pandemic was handled well in China, whose production and foreign trade became stable. China's surrounding countries didn't cope well with the pandemic. Products have been shipped overseas, but containers are not returning from Europe and America, where the pandemic isn't contained yet," he said.

Industry insiders estimate that two to three million TEUs of new containers need to be produced to ensure enough supplies of containers go around, and a large proportion is from China. But the shortage of steel is another factor that led to the reduced production of shipping containers in China and the high prices.

"When products are exported to Europe or America, I would suggest the signing of contracts to bring these empty containers back. This could make a difference. Also, the government could offer bursaries, including for loading and unloading the empty containers. These may alleviate the tensions caused by container shortages," said Liu.