Container Supply Surges—But Are They in the Right Place?
The dramatic shifts in containership deployment triggered by Donald Trump’s on-again, off-again trade war have recently driven freight rates sky-high and worsened port congestion. Yet unlike another major disruptor of the 2020s—COVID—this time, there's no container shortage in sight.
In fact, container production in China is booming, with manufacturing levels surpassing even the record highs of 2024. According to Asia-based consultancy Linerlytica, China’s new container inventory hit an all-time high of 1.55 million TEU by late May. More than 2.3 million new containers have already rolled off production lines this year, and the surge is expected to prevent a repeat of the 2021 crisis when inventories plunged to just 100,000 TEU.
Linerlytica noted in its latest report:
“Fears of container shortages have proven unfounded, despite delays in returning empties from Europe and North America. The ready availability of new boxes—thanks to falling equipment prices—has prompted both carriers and lessors to stock up aggressively.”
But here’s the catch: while there’s no shortage overall, containers still aren’t always where they’re needed most. Logistics bottlenecks remain a challenge. It’s the classic case of having the "right box in the wrong place".
To understand the scale of production: China’s highly automated factories can build, paint, and dry a standard container within a single day shift—yes, day shift only; the night shift still battles with less-than-ideal paint-drying conditions. At peak capacity, these plants produce up to 20 containers per minute. That’s a staggering amount of steel in motion.
From factory floor to deployment, lead times typically range from 6 weeks to 4 months, depending on container type and market conditions. Fortunately, China's proximity to global export hubs means most boxes are in circulation within weeks.
The global box supply is flush, the real challenge?
Positioning those containers where and when they’re actually needed.