High prices, tripled logistics times, threats of an energy crisis… The world has Covid 19, but still no vaccine. Congestioned ports, fren.

Globalization in the last twenty years has generated a structural change in the economy, supported by an ever more flexible logistics. Over time we have realized that globalization does not mean a standard product on a planetary level. On the contrary, far from standardization, the challenge over time has been to be able to personalize a pulverized offer even in the most remote places.

Consumption models have changed a lot, and with it logistics, capable of reaching the peripheries of the markets with always more flexibility.

Everything seemed to be heading towards the mantra of “Think global, act local”, until Covid-19 did not arrive. The E-commerce irruption was already showing signs that the demand for goods was moving upward, albeit with a regulated rhythm, which allowed the logistics chain to act effectively and efficiently.
The Covid-19 pandemic has stopped millions of containers in dozens of ports, causing an unprecedented first mismatch worldwide.

The activity has gradually started again, collapsed by an excess of demand that has congested logistics traffic and ports, tripling the costs and times to move merchandise from the places of production (Asia) to the destinations of consumption (Europe and the United States).

Where are the containers?

They have become in 2021 a trending topic word in networks. The shipping container has gone from being a commodity in the world of logistics to a word associated with Christmas and gifts to children. Thousands of containers today are missing from logistics, driven by the need to deliver huge quantities of merchandise in an economy that needs heavy numbers to leave behind the burden caused by Covid-19.
Containers languish in the ports, which are always more congested. At the entrance, because the structures do not provide enough to be able to stock the merchandise in the warehouses. The surroundings of the ports are huge parking lots for ships, which, waiting to unload, are giving the image of the delay that all this will cause in emptying the containers, and then being able to start another long journey back. And on the way out, because the containers stocked in the terminal stay a long time waiting for the availability of trucks that can move them in the distribution centers.
The lack of trucks, port personnel and storage capacity slows down the process and increases costs. Containers are thus being delayed, always more postponed to subsequent ships, which are already traveling with totally out of date schedules. Shipping companies that are the great lucky ones of this hectic time, that they already stop the power of slot and routes, and have also raised the price of their C.O.C.

Optimizing costs in this time of great uncertainty is impossible. The routes are always longer, passing through one or two transfer ports. And they are also always more expensive, because being able to bring the merchandise has already become a struggle to find available freight.

Containers S.O.C. and multimodal transport

Uncertainty that can only be tried to address, with two elements that are becoming key. The first of all is to use S.O.C. (Shipper Own Container). Buy containers to be able to have security of load and transport capacity. It is true, their prices have also risen by a thousand, but together with another element they can reduce the puzzles involved in bringing merchandise today.

Multimodal transport can be a very good answer if it is coupled with the availability of its own containers. The great advantage is that the routes and the range of transport possibilities are greatly expanded, always having the container as the same load unit, being able to load in all means of transport (cargo, train, trucks).

Since 2015, train connections from Asia to Europe have multiplied under the vision of developing the Silk Road in multiple destinations on the old continent. The train has been able to reduce transport times by sea by two thirds. Even so, it cannot be the privileged route, due to its limited load capacity compared to that of the huge ships. But the set of having its own containers, together with the ability to move goods through multimodal transport platforms, can be an important solution to face a world that still continues with Covid.

The forecasts for what is too generically defined as “return to normality” have already failed several times, sliding from the first to the second, to the third, and finally to the last quarter of 2021, the return to conditions to date very far from indicate flows and prices at levels prior to the outbreak of Covid-19.