Transportation Roundup: Implications for container vessel capacity increases

The Journal of Commerce put this graphic out last week that tells the story of just how much new capacity was gained in 2023. Already slow steaming, there are many excess containers operating on the East Coast to compensate for the slow chug around Africa (avoiding Suez), and post pandemic import slack – this doesn’t brighten the picture ahead for steamship liners (SSL).

Eventually, one expects the Suez situation to improve, creating a flip on “extra” containers back from East to West that are currently compensating for the longer run. SSLs remain determined to scale themselves to being “right-sized” based on the current economic condition they find themselves. They want full vessels and will seemingly sacrifice regular service to minimize losses in this environment. SSGA members are wary of dropped sailings/rolled bookings, inconsistent arrival for exported cans and a myriad of resultant fees for shippers and customers that are unannounced are likely to be the result.

We will be talking about how this and other dynamics will likely affect container movement of agricultural products in the next decade at Transportation Go! March 13-14 in Toledo, Ohio.