No Relief: Global Container Shortage Likely To Last Until 2022
The world does not have enough containers in the right places to handle cargo demand. It’s a conundrum that has persisted for so long that the mainstream press is finally covering it. The New York Times reported Friday how the box shortfall is contributing to inflation: “Demand … has outstripped the availability of containers,” while the U.S. pandemic situation has eased to the point where retailers can pass along higher transport costs to consumers without being accused of price gouging — and “the cost of just about everything is rising.”
Port of Savannah To Boost Capacity
After reporting a volume increase of 15% in its fiscal year to date (July 2020 to March 2021), the Georgia Ports Authority (GPA) laid out its plan to expedite the expansion of its capacity by more than 1.4m teu. At the end of March, the GPA board approved capital-improvement projects to boost capacity by 20% after experiencing rapid growth. At that time, executive director Griff Lynch said, “Right now, we are moving container volumes that we did not expect to see for another four years.” Two projects account for the 1.4m-teu growth: The Peak Capacity project will add 650,000 teu of annual container-yard capacity in two phases at Garden City Terminal, and the development of 92 acres adjacent to the Mason Mega Rail Terminal will add 750,000 teu of annual capacity within two years.
Reprinted by permission of LACBFFA