Causes of Container Imbalance

When looking at how to reduce your current shipping costs, one of the most important things to consider is container imbalance, which can often result from excess inventory. Even if you are shipping only a few items per shipment, the overall cost can still add up. If you can prevent excess inventory, you can greatly reduce your shipping costs.

As Asia continues to grow, so does the number of goods that are being shipped to consumers in the U.S. Along with this, as the demand for products like electronics in particular increases, so too does the number of available containers. In an ideal world, a container carrying goods from one region to another would already have been filled. In the real world, however, that is not always how things work. It’s just a matter of a supply & demand chain which creates a dramatic container imbalance.

What often happens is that freight forwarders in Asia will place their orders with a carrier in another country, but their containers will be stuck in a particular airport. These carriers then pass on the load to a carrier in the United States, who will then bill the freight forwarder for the amount of cargo that he or she is carrying. In turn, these third-party carriers will attempt to provide a cheaper option to the carriers in the United States by passing along discounted rates to the shipper.

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