Containeritis…could be an even bigger problem than Covid for 2022

While everyone is worried about the spread of Omicron, a far bigger problem looms ahead for all of us in 2022.

Containeritis, which is already starting to have a massive impact on all our lives is in fact not a virus, but an issue regarding containers.

Over 95% of all imports arrive by containers, and many Western households rely on goods from the East.

Recently several Vietnam manufacturers have had to turn down desperately needed contracts from abroad, as not only are they suffering from labour shortages, but also cannot guarantee to make deliveries on schedule.

Most contracts with retailers do not include paying extra for price rises in shipping costs, leaving the Asian manufacturer to foot any increases alone.

Surging shipping costs have driven up prices for some consumer products by 10%, new UN report finds.

The rate for a single shipping container has skyrocketed over the last 18 months as the coronavirus pandemic disrupted supply chains and trade channels.

In China, the shipping costs increased by about 360% last year, which has severely affected the companies that rely on moving goods.

Increased shipping demand and container shortage have made shipping from China and other countries very expensive.

Containers made in Vietnam

Seeing an opportunity, last week Steel giant Hoa Phat Group has received a permit to build a VND2.4 trillion ($104.64 million) container manufacturing plant here in Vietnam, in the southern province of Ba Ria-Vung Tau.

The plant, when complete, will have the capacity to produce 500,000 twenty-foot equivalent units (standard size) a year.

But Hoa Phat has two advantages that could help it compete with Chinese manufacturers: its own hot-rolled coil steel plant that has proven successful in making the metal box, and cheaper labor in Vietnam.

Many western ports especially in the States are also adding to the problem as they have not invested in the latest tracking devices, and they also have labour shortages of drivers to actually take the container to the stores.

Bottom line is the next pair of trainers, or the latest mobile you plan to buy, is not only going to be harder to find, but the prices are likely to rise dramatically.

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