“It is Observed Decline in Containerization in World Trade”
ECLAC’s specialist, Ricardo Sánchez, in an interview with MundoMaritimo of Chile, reveals an innovative approach on the stagnation in the movement of containers in Latin America, consistent in that the proportion of commodities is higher than the 20 years ago, fact that generat the use of fewer containers, which leads to rethinking the previous trend that all the growth of the container was explained by trade, by technological change. Today not anymore: there are other factors that make that be reduced by what we can expect that we do not have growth rates of the containers as spectacular as we had 10 years ago. This reaffirms the so repeated position of Latinports of the need to rethink the port business.
A change in the trend in the process of containerization has captured the attention of Ricardo Sánchez, expert of ECLAC in port and shipping development, who in his speech at the Container Supply Chain Conference of TOC Americas 2018, gave a preview on a thorough investigation on this case. Sanchez explained, in conversation with MundoMaritimo, that this change in the trend of the containerization can exemplify in if it had occurred a similar trade volume in 2013 and 2017, in 2013 18 million containers would be needed more than in 2017. Sanchez explained that the finding of this decline led to the question about what caused this phenomenon. Within the reasons were discovered many, of which however remains to be determined what are the greatest influence. “We have shared this with colleagues around the world to ask for the opinion of very qualified people”, he noted. For example, says the specialist of ECLAC, one of the things that draws the attention of this phenomenon is that it was supposed that increasing the size of ships and stronger alliances would generate more transfers, “however, we are counting, there is less” indicates. “Two of the world’s largest consulting firms have certified us that this is happening,” he added.
“We think that the container and containerization, as any innovation – and already has more tan 60 years – also at some point would begin to go through this process”, said Sanchez, but makes clear that “we do not know at which stage of decline we are”.”No doubt that containerization has many years ahead, but already it is not growing and that is due to many factors and one of these is the existence of a better use of the units and it shows a greater use of the 40-foot containers” , said Sanchez. And he added: “the goods have shrunk. Then if earlier to send 100 monitors of computers was needed a container, today only need 3 / 4 of the container”. “We have also checked – he says – that in 6 countries in South America this has been happening over the last time”.
There are other factors that are in the report for publishing, explains Sanchez, having to do with a Latin America more ” return to start”, i.e., there are fewer industrial products in total exports: “is much more commoditizated foreign trade of Latin America”, added Sanchez, who also states that “the proportion of commodities is greater than the of 20 years ago, fact that generates the use of fewer containers”. “Before all the growth of the container was explained by trade, by technological change, today already no. Today there are other factors that make that be reduced. “So we can wait is that we do not already have growth rates of the containers as spectacular as we had 10 years ago”, he argues. He added finally that the market “is will be overwhelmed also. If you 20 years ago you sent the coffee in bags and later you started sending in containers, and then you bring in container another product… at one point products that you could contenedorizar are finished and we are entering in that stage more flat” he finally emphasized.