Increasing freight costs, container shortages threaten exports: GTRI | News  - Business Standard

How Container Shortages Still Affect SME Exporters: A Hidden Supply Chain Challenge

Global trade has faced unprecedented challenges in recent years—none more glaring than the ongoing container shortages that continue to impact exporters around the world. While large multinationals may have the logistics muscle to weather these disruptions, small and medium-sized enterprises (SMEs) often bear the brunt.

Even as global supply chains adjust post-pandemic, container imbalances and logistical inefficiencies persist, making it harder—and more expensive—for SMEs to access global markets. This blog explores the underlying causes of these shortages, their disproportionate effect on SMEs, and strategies to mitigate the risks.


📦 Why the World Still Faces Container Shortages

1. Lingering Post-Pandemic Disruptions

COVID-19 created ripple effects in container logistics. Port closures, uneven reopening schedules, and labor shortages created a domino effect of container misplacement, leaving thousands of empty containers stranded at import-heavy ports.

According to Drewry Shipping Consultants, while some balance has returned, the global container fleet is still out of sync, especially on trade routes involving Asia, Africa, and Latin America.

2. Geopolitical and Climate Pressures

  • The Red Sea crisis and Houthi attacks rerouted vessels away from the Suez Canal, increasing shipping times and keeping containers “stuck” longer.

  • Extreme weather, such as droughts affecting the Panama Canal, has reduced shipping throughput, again limiting container turnaround.

🔗 Learn more from World Economic Forum – Why Container Logistics Remain Fragile


👨‍💼 Why SMEs Are Hit the Hardest

1. Limited Bargaining Power

Large exporters often book entire containers or long-term contracts with shipping lines. SMEs usually rely on Less than Container Load (LCL) shipping, which is:

  • More vulnerable to delays

  • Priced at a premium during tight capacity

SMEs also lack volume leverage, so they are last in line during high-demand periods.

2. Cash Flow Constraints

Skyrocketing container shipping prices—once averaging $1,500 for Asia–Europe routes, spiking to over $10,000 during the crisis—have left SMEs struggling with budget unpredictability.

Even with rates stabilizing, fuel surcharges, demurrage fees, and port congestion penalties still exist.

🔗 See Freightos Baltic Index for updated global freight rate benchmarks.

3. Missed Opportunities and Delayed Orders

SMEs often work with perishable goods, seasonal products, or time-sensitive promotions. A delay of just two weeks can mean:

  • Lost retail shelf space

  • Cancelled contracts

  • Damaged brand reputation in foreign markets

Unlike larger players, SMEs may not have backup inventory or multiple suppliers.


🌍 Real-World Examples of Container Challenges for SMEs

  • India’s textile SMEs have reported delays of 20–30 days in container availability, particularly at inland container depots.

  • Kenyan flower exporters have had to air freight products at high cost due to missed sea shipment schedules.

  • Vietnamese electronics SMEs, reliant on rapid exports to the EU and U.S., face container congestion at Ho Chi Minh’s Cat Lai Port.

🔗 Read more on SME logistics constraints from UNCTAD


🔄 How Container Imbalances Happen

Global trade is not symmetrical. For instance:

  • The U.S. imports more than it exports, leading to empty containers piling up at U.S. ports.

  • Exporting countries like Bangladesh or Cambodia often wait longer to receive empties, delaying shipments.

This geographic imbalance is compounded by slower container repositioning efforts from major carriers, who prioritize high-paying routes.

🔗 A detailed explanation from OECD – Logistics Disruption


📊 What Can SMEs Do to Mitigate Container Shortage Risks?

1. Partner with Agile Freight Forwarders or Sourcing Agents

Agents with strong networks can:

  • Pre-book container space in bulk

  • Offer consolidated shipping options

  • Reroute shipments to less congested ports

🔗 Visit BestSourcing-Agent.com for trusted logistics partner options across Asia and Europe.


2. Adopt Flexible Packaging and Transport Options

Using adaptable packaging that works for both air and sea freight gives SMEs more flexibility. For urgent orders, splitting loads across multiple carriers may ensure partial fulfillment.


3. Diversify Export Destinations and Routes

Rather than focusing only on Western markets, SMEs can expand to:

  • Regional neighbors with shorter shipping routes

  • Markets accessible by rail or road, such as China to Central Asia or Europe

🔗 Explore the rise of China-Europe rail freight via RailFreight.com


4. Use Logistics Tech for Container Tracking

SMEs can adopt affordable platforms that provide:

  • Real-time container availability

  • Port congestion insights

  • Customs clearance alerts

Tools like Project44 or Container xChange help SMEs compete using data-driven insights.


💬 Expert Advice: Stay Ahead with Collaboration

According to a report by McKinsey & Company, “collaborative sourcing” and logistics pooling are key strategies for SMEs.

Joining cooperatives or regional sourcing networks can increase leverage and lower logistics costs, especially when accessing bulk container deals or multimodal options.


📈 Looking Ahead: Will Container Availability Normalize?

While the worst spikes in cost and availability seem behind us, 2025 could still bring instability:

  • Increasing fuel prices due to environmental regulation

  • Climate-related port disruptions

  • Geopolitical risks like China–Taiwan tensions

Thus, container access will likely remain an unpredictable factor—especially for resource-constrained SMEs.

🔗 Keep an eye on trends with The Loadstar for up-to-date supply chain developments.


✅ Conclusion

Container shortages are not just a leftover issue from the pandemic—they remain a persistent barrier to SME exporters. Without the scale and resources of larger firms, SMEs must be strategic, agile, and collaborative to navigate these bottlenecks.

Leveraging sourcing agents, logistics partners, digital tools, and diversified trade routes will help small exporters stay globally competitive—even when containers are hard to come by.

🔗 Visit BestSourcing-Agent.com to find expert agents who can help your business navigate container shortages, book reliable freight space, and ensure on-time delivery across markets.

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