The shortage of empty containers in the shipping industry: Causes and solutions for Vietnam

Abstract

By the end of 2020, the world shipping industry faces a serious problem: the shortage of empty containers, especially in Asia. This has led to the cost of shipping a container globally to record highs. Shipping costs was initially less than 1,000 USD/40ft container has now increased to 8,000- 10,000 USD/40ft container (An Ton, 2021). The Covid-19 pandemic caused factories to stop production, container ships to cancel the shipping, supply chain failures occurred on a global scale. This paper focuses on clarifying the impact of the epidemic on the shortage of empty containers during the peak season at seaports and the shortcomings of container production and management. The article provides the situation globally and in Vietnam through the method of synthesis and analysis, making comprehensive analysis of the empty container shortage. Therefore, this paper suggests immediate measures such as stabilizing container rental rates, the mobilization of other non-specialized ships, information sharing, cooperation between import and export enterprises and shipping lines. Longterm solutions also need to be seriously considered to secure adequate empty container supply in the future.