A global survey published by Container xChange shows that the majority of the container logistics industry (75%) is rethinking its logistics strategy in the coming year. The survey results indicate that the sector expects gloomy times for the container logistics industry. The main challenges for the sector continue to be the search for space on board and the surcharges of the shipping lines. Meanwhile, one-way leasing was the most requested alternative compared to the acquisition of equipment by shipping lines.

In the xChange Industry Survey 2021-22, conducted of 800 global container logistics players, including shipping lines, traders container companies, goods transport companies, NVOCCs, freight forwarders and container acquisition companies. His goal was to study the industry sensation, the key learnings of 2021, and the outlook for 2022 from the players.

key findings

• The industry is not optimistic about supply chain performance in 2022. Of the total respondents, 65% said it will deteriorate further (11%) or appear to remain the same (54%) in 2022.
• The main challenge that respondents experienced in carrying out their activity was finding spaces on board (53%), followed by surcharges on shipping lines (22%) and labor shortages (19%). The rest of the respondents (6%) highlighted the lack of transparency and visibility in the supply chain as a challenge.
• When asked which alternatives they were attracted to compared to sourcing equipment from shipping lines, 50% of respondents said they used one-way leasing, followed by long-term leasing contracts (28%) and the purchase of containers (22%).
• Overall, 71% of those surveyed said they were rethinking their logistics strategy and were seeking more diverse sourcing and turning to holding more inventory. 71% said they would opt for more diverse sourcing, 43% said they would opt to hold more inventory, 21% said - Enter into long-term contracts with carriers and avoid the spot market and supply chains. shorter supply.
• The main causes of the shortage of containers this year, according to those surveyed, were that: carriers who use the boxes as storage (42%), failures in container lines (28%), ineffectiveness when placing in contact of container owners with potential users (28%), and longer transit times and port congestion that slowed container turnover. (The question was multiple choice and therefore it will not add 100% when adding the percentages)
• Asked “who was the biggest winner from the global supply chain crisis”, the industry unanimously echoed the view that shipping lines (64%), followed by shippers (21%) and freight forwarders (15%).
• 75% of those surveyed stated that COVID-19 had an impact on their business. Of these 75% of respondents, 54% said the pandemic led to lower profit margins, 36% said it led to less transparency, and 36% said they turned to more digital solutions during these difficult times.

According to Christian Roeloffs, co-founder and CEO of Container xChange, just as 2021 saw a slight recovery from the pandemic, the new variant made a dramatic entrance and shook up the industry once again. “We anticipate that COVID-19 and its new variants will continue to disrupt port operations,” he noted.

He added that “persistent unpredictability is guaranteed. We have also started to see container prices and leasing rates come down. Once prices drop significantly, they risk crashing. If we look at the current demand, we see that the demand for containers has not increased significantly.”

“The current rise in rates is due to a temporary supply shortage. But with disruptions, such as union disputes at US ports, easing, we will also see the capacity challenge improve. However, the 'return to normality' will apparently come sooner than many of us had anticipated, and could happen in the second half of 2022,” he added.

Johannes Schlingmeier, Co-Founder and CEO of Container xChange, also shared his expectations for the year 2022: “2021 was an extraordinary year for the shipping industry. The staggering earnings and profits of the shipping lines have exceeded the combined profits of the industry for the entire decade. It was also a year that showed shippers were 'willing' to pay higher prices for ocean freight.”

“Now those profits and benefits will have to show that that money can be used to improve service levels across the industry. This has to go beyond the traditional levers of investing in more container capacity, but also in land infrastructure, inland transportation, and infrastructure for cross-industry collaboration to build industry resilience.”