According to Sea-Intelligence, global trade imbalances and the Red Sea crisis are pushing up the distances traveled by empty containers, weighing on freight rates
Brussels – An analysis by Sea-Intelligence highlights that the movement of empty containers is growing strongly, increasing the pressure on shipping companies’ costs and, consequently, on global supply chains.
Container Trade Statistics (CTS) data shows that, while the demand for full containers in teu continues to fluctuate, the handling of empty containers has increased significantly since 2020. Sea-Intelligence emphasized that this phenomenon reflects global trade imbalances and that the greater distances traveled by empties end up increasing the costs of transporting full containers, as the expenses must be allocated among the paying loads.
According to calculations, shipping companies now have to move an empty container for 4.1 nautical miles for every 10 miles traveled by a full container, compared to 3.1 in 2019, before the pandemic. The institute added that the Red Sea crisis has worsened the situation, but the data confirms a broader, long-term trend.
After a brief decline in 2022, the movements of empty containers have resumed growth with an increase also in the average sailing distances, highlighting an absolute increase in the work required to rebalance global flows.
