top of page
  • InduQin

Soaring Demand Drives Container Prices to New Heights in China

The surge in container prices is mirrored by a remarkable increase in leasing rates, particularly on the China to Europe and China to US routes. Pickup charges ex-Shanghai to Rotterdam have tripled from $500 in November 2023 to around $1,700 as of June 2024. Similarly, rates from Shanghai to key US ports like New York, Oakland, and Los Angeles have more than doubled during the same period.



In a remarkable turnaround, the average container prices in China have reached their highest levels in two years, signaling a robust rebound in global trade. The 40 ft high cube cargo containers now fetch an average of $3,600 this week, a staggering 112% increase from the $1,700 prices recorded just two months ago in March-April 2024.

 

"While prices and rates are significantly up, trading volumes have decreased as buyers are becoming more cautious. This trend potentially indicates a potential reversal of prices in the near future, as the market adjusts to the current disruptions and the high levels of volatility," shared Christian Roeloffs, cofounder and CEO of Container xChange.


 The surge in container prices is mirrored by a remarkable increase in leasing rates, particularly on the China to Europe and China to US routes. Pickup charges ex-Shanghai to Rotterdam have tripled from $500 in November 2023 to around $1,700 as of June 2024. Similarly, rates from Shanghai to key US ports like New York, Oakland, and Los Angeles have more than doubled during the same period.

 

"We witness asking rates for leasing containers reaching $2,600 this week in China. This is crazy. These pickup charges were not more than $300 only until October last year, and without any significant demand surge from the consumer side, these prices are increasing only because of the disruptions at sea and not driven by demand, which worries us because this means it's not sustainable, highly volatile," shared a Container xChange customer from Shanghai.

 

Despite the current volatility, the long-term outlook for China's container market remains cautiously optimistic. The positive trends in US retail demand and robust growth in China's port throughput suggest sustained demand for container shipping services. In the first four months of 2024, China's ports recorded a 9% year-over-year increase in container throughput, handling 104.03 million TEUs.

 

"Container shipping companies should prepare for potential shifts in trade patterns by diversifying their routes and enhancing logistics capabilities in other growing markets, such as Southeast Asia and South America. Investing in technology and infrastructure to improve efficiency and reduce costs will be critical in navigating the potential market volatility and maintaining competitiveness," Roeloffs added.

 

While the current market dynamics present challenges, the resilience and adaptability of the container shipping industry will be key to weathering the storm and capitalizing on the emerging opportunities in the global trade landscape.

78 views0 comments

Comentarios


bottom of page