Factor | Outcome |
Growing availability of containers | More containers available on freight markets. Ubiquitous transport product. |
Rising demand and commodity prices | More commodities in circulation (usage of containerization to accommodate growth). New producers and consumers (marginal markets penetration). |
Volatility and rises in bulk shipping rates | Decrease in the ratio cargo value per ton shipping rate for commodities. Volatility (rates) and risk (hedging). Search for options to bulk shipping. |
Low container shipping rates | Increase in the cargo value per TEU shipping. Relative rate stability. |
Imbalances in container shipping rates | Export subsidy for return cargo. |
Empty containers repositioning | Pools of containers available for backhauls. |
Processing | Processing close to production favors a shift from bulk to containerized shipping. |
The above table underlines the main factors behind the containerization of commodities. Depending on the circumstances and the commodity trade involved, each factor plays a different role. For instance, in the United States, imbalances in container shipping rates have favored the export of low value commodities (e.g. waste paper) across the Pacific.