Economy

Hapag Lloyd large container order helps fight global box shortage

Apr, 16, 2021 Posted by Andrew Lorimer

Week 202116

German shipping company Hapag-Lloyd has placed an order for 150,000 twenty-foot equivalent containers amid the pandemic-fueled container crunch in Asia and around the world, as per our Chaos strikes global shipping article published a few weeks ago. Just today data released by the Port of Los Angeles showed March numbers at the port broke all-time records, with TEU handling more than 20% above previous records from 2017, and over 115% higher than March 2020.

The boxes, ordered from China, include both dry boxes and state-of-the-art reefer containers, as well as an additional 8,000 TEU of special containers to be used for over-sized or dangerous goods. The company says some of the boxes have already been delivered and integrated into its existing container fleet in the first quarter for 2021, but the majority of them are expected to be delivered in the upcoming months.

The investments amount to roughly USD 550 million making it one of the biggest container orders in the history of Hapag-Lloyd.

Strong shipping demand combined with trade imbalances have left shipping lines scrambling to reposition boxes to alleviate shortages that jeopardize exporters’ abilities to ship products overseas.

“The container shipping industry is currently seeing unprecedented demand, which has led to a shortage of containers all over the world. With its recent container orders, Hapag-Lloyd is contributing to efforts to ease the current situation and will be able to offer its customers a much better service,” says Rolf Habben Jansen, CEO of Hapag-Lloyd.

Original Story: gcaptain.com

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