How the Pandemic Turned Steel Into Gold – The Alchemy of Shipping Containers

It started with a tiny virus that brought the world to a halt — and somehow turned steel into gold.

The COVID-19 pandemic didn’t just disrupt daily life; it flipped the global shipping container industry upside down. What was once a steady, predictable market suddenly became a global shortage crisis, driving shipping costs to record highs and forcing even major retailers to rethink logistics from the ground up.

The Great Shipping Container Shortage

Before 2020, the average cost to ship a 40ft container from Asia to the U.S. hovered around $2,000. Within months, that number skyrocketed to $10,000 — a 400% surge.

Used containers that once sold for $2,000 suddenly fetched $6,000–$7,000, as businesses scrambled to secure units for international and domestic shipping.

In alchemy terms, steel really had become gold.

Even 16 months into the pandemic, the global container shortage was far from over. With shipping routes backed up, empty containers stranded at ports, and manufacturers unable to keep up with demand, the world learned just how fragile — and essential — its logistics network truly was.

For a detailed global freight overview, see:
https://www.drewry.co.uk/maritime-research
https://unctad.org/topic/transport-and-trade-logistics

Delays, Backlogs, and the Struggle for Supply

By late 2021, ports around the world were overflowing. Containers that should have returned to Asia for reuse sat idle in European and U.S. depots for weeks or even months.

This backlog created a domino effect:

• Fewer containers available for exporters

• Longer delivery times for importers

• Record-high freight costs that inflated prices for nearly all consumer goods

Even now, in 2025, some regions continue to feel the residual impact of those bottlenecks — especially during seasonal surges like the holiday shipping period or Chinese New Year.

For historical context: https://www.wsj.com/articles/shipping-container-shortage

How Big Retailers Adapted

The global shipping crisis forced many corporations to take matters into their own hands.
A famous example came from IKEA, which began buying its own containers rather than leasing them. By doing this, the company gained control over its supply chain and reduced its reliance on third-party logistics providers struggling with equipment shortages.

Other major brands — from Amazon to Home Depot — followed suit, chartering private vessels and building dedicated supply chains to bypass congested routes.

These moves marked a shift in how large-scale retail logistics are managed — proving that containers are no longer just tools of transport, but strategic assets.

Read more on IKEA’s container strategy:
https://www.reuters.com/business/retail-consumer/ikea-buys-containers

Why Shipping Container Prices Exploded

Several overlapping factors combined to push prices to record levels:

1. Container Imbalance: Empty units piled up in Western ports while Asian factories needed them back.

2. Surging Demand: E-commerce boomed as consumers shopped online during lockdowns.

3. Rising Raw Material Costs: Steel prices soared, increasing manufacturing costs for new containers.

4. Labor Shortages: Factory and port closures slowed container production and logistics operations.

5. High Fuel Prices: Shipping companies raised rates to offset increased operational costs.

The result? A container that once cost $2,000 to buy could now sell for over $6,000 — and a shipment that used to cost $2,000 to move across the Pacific could cost five times as much.

Global steel price data: https://www.statista.com/statistics/steel-prices

The Lifespan and Afterlife of a Shipping Container

Typically, a shipping container lasts about 15 years before it’s retired and repurposed into affordable storage, workshops, or housing.

But during the height of the crisis, even retired containers were in short supply — pushing up prices for recycled or converted units as well.

At Yes Containers, we’ve seen increasing demand for both used and new containers as people explore creative uses for durable steel boxes — from storage sheds to tiny homes.

Explore some options:

• Used 20ft Standard Containers

• Used 40ft High Cube Containers

• New 40ft Double Door Containers

When Will the Container Market Normalize?

Even in 2025, industry experts remain cautious.
While freight rates have stabilized from pandemic highs, container supply and demand still fluctuate due to geopolitical tensions, regional port disruptions, and ongoing trade imbalances.

Analysts from Drewry and Clarksons Research suggest that container prices won’t fully normalize until 2026, as manufacturers balance production with moderating demand.

So, while Nostradamus may have predicted the future, even shipping experts can’t tell exactly when things will return to “normal.”

For shipping market forecasts:
https://www.clarksons.com

FAQs About the Shipping Container Crisis

Q1: Why did container prices rise so quickly during the pandemic?
Because manufacturing slowed down while global demand surged, creating a massive equipment shortage and driving prices up overnight.

Q2: Are shipping container prices still high in 2025?
Yes — though lower than the 2021–2022 peak, prices remain above pre-pandemic averages due to fuel costs, inflation, and strong trade demand.

Q3: Can buying used containers save money?
Absolutely. Used Wind and Water Tight (WWT) units are a cost-effective alternative for storage or construction projects.
👉 Get a Quote

Q4: Is it smarter to buy or rent containers now?
That depends on your project. For short-term needs, leasing or Pay on Delivery (POD) programs are ideal. For long-term use, ownership is more cost-efficient.

Q5: Could another container shortage happen?
Yes. Any large-scale disruption — such as geopolitical conflict or new trade restrictions — could tighten supply again. Many companies now keep extra containers on standby as a precaution.

Final Thoughts

The pandemic may have begun years ago, but its effects still echo through the shipping container industry. What started as a global logistics nightmare became a lesson in resilience, innovation, and adaptability.

Steel truly did become gold — not through alchemy, but through the extraordinary pressures of modern global trade.

If you’re looking for reliable, affordable containers in this new era of logistics,
👉 Get a Quote or call (800) 223-4755 to connect with a shipping container expert today.