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CONTAINER leasing platform Container xChange said that shipping companies had placed orders in China for more than 750,000 TEU of ISO containers in the past two months, reports the UK's Seatrade Maritime News.
It is estimated that 500 vessels out of 700 set to transit the Red Sea have been re-routed to round the Cape of Good Hope in South Africa.
The demand comes as container lines avoid transiting the Red Sea, instead taking the longer route around the Cape that absorbs market capacity, said the report.
Further short term pressure is present in the market as Chinese New Year approaches and forwarders and shippers scramble to get shipments out before Chinese manufacturing closes down for the week of February 10.
"Retailers must get used to keeping higher inventories as Supply Chain disruptions become a norm," said Container xChange co-founder Christian Roeloffs.
"As we witness continued disruptions disturbing the global supply chains in the mid to long term, we will see enhanced supply chain resilience." said Mr Roeloffs.
Slot prices for carrying containers on Asia-Europe and other trades dependent on the Red Sea have risen sharply in recent weeks as capacity tightens and costs for insurance and bunkers increase.
"The average rate on China-Europe quoted this week is about US$5,400 per 40' high cubed, up from $1,500, or three times just the week before," said Mr Roeloffs.
Container spot rates in the Latin America East region have risen by 48 per cent in the 30 days to January 11.
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