Before the Red Sea crisis, there was an oversupply of shipping containers. However, since the crisis began, voyages from Asia to the US and European markets have been extended, transforming the oversupply into a shortage.

This year, it is expected to record one of the highest productions of containers, with manufacturers reporting that it will be booked entirely by October. Chinese manufacturers produced about 850,000 TEUs of dry and reefer containers in July alone.

The growing demand for new containers is evident from the fact that in the first half of 2024, about 1.5 million TEUs were introduced into the market, compared to 125,000 TEUs manufactured during the first half of 2023.

The growing demand for empty containers is not just a result of increased exports from Asia to Europe and the US markets. Retailers, in anticipation of the upcoming Christmas and Thanksgiving seasons, are also stocking up, further escalating the demand. This, coupled with the growing congestion at transhipment hubs, is driving the need for more containers. For instance, Hapag Lloyd spent around $500,000 this year on new containers, which is among the largest orders the shipping line has ever placed.