Container prices in China are again experiencing quite abrupt and significant fluctuations.
- Tension in the Red Sea Leads Suppliers and Sellers to Seek to Cover Risks
As a result of geopolitical tensions and uncertainties, container values have been subject to change in less than 48 hours. As a result, prices charged to clients for ocean freight have become somewhat unpredictable.
Despite the current context characterised by this price increase, the market is not yet fully under pressure. This is because prices have not risen as quickly as they did during the post-Covid demand period. So there are still containers available. This is evident in China, where most container terminals are operating below full capacity. However, container terminals in the United States and Europe recorded higher utilisation rates.
As demand increases, so do the reserve rates for containers and equipment. This has led to an increase in the transport of traded goods.
- Average Development Of Container Prices In Transhipment Ports
As geopolitical tensions rise, new stops have been strategically added to shipping routes to mitigate risk and ensure the smooth flow of goods. However, these changes in shipping routes have affected prices in some ports.
Between June 2023 and April 2024, ports such as Ningbo, Qingdao, Xangaie and Busane handled price increases. In contrast, ports such as Antwerp have remained relatively stable, with only minimal fluctuations. The port of Singapore was moderately volatile, with a slight decrease in average container prices. In Northeast Asia, price increases indicate a solid transhipment service, driven by factors such as regional trade dynamics and economic growth.
- What Can We Expect From Container Prices In The Near Future?
A steady and gradual increase in prices over the coming weeks is indicated by the Container Price Index (xCPSI).
In view of these forecasts, it is important for companies to be aware of the fluctuations in the market, especially in the supply and demand forecasts. This enables them to develop strategies for optimising transport costs.
You can count on Olicargo as your logistics partner. We can help you redesign your supply chain strategy. Juntos podemos mitigar o impacto financeiro de novos aumentos esperados nos custos do Transporte Marítimo de contentores.
Sources:
AJOT: American Journal Of Transportation. (2024). Container xChange market forecaster: Rising volatility in China’s container market as sellers hold back inventory amid uncertainty. Retrieved 10 May 2024 at: https://www.ajot.com/news/container-xchange-market-forecaster-rising-volatility-in-chinas-container-market-as-sellers-hold-back-inventory-amid-uncertainty
C Logística. (2024). Volatilidad sin precedentes en el precio de los contenedores de China que anticipan subidas de precios. Retrieved 10 May 2024 at: https://logistica.cdecomunicacion.es/maritimo/141575/volatilidad-sin-precedentes-en-el-mercado-de-los-contenedores-de-china-que-anticipan-subidas-de-precios
Distribuição Hoje. (2024). Volatilidade no preço dos contentores na China volta a preocupar. Retrieved 10 May 2024 at: https://www.distribuicaohoje.com/supply-chain/contentores-china/?utm_term=CTT%2Bs%3F%3F%3F%3Fo%2Bos%2Bprimeiros%2Bocupantes%2Bdo%2BBenavente%2BLogistic%2BPark&utm_campaign=Supply%2BChain%2Bby%2BDistribui%3F%3Fo%2BHoje&utm_source=e-goi&utm_medium=email&eg_sub=430dc703c9&eg_cam=d57dd63eb6d2f77e2e3867f06472ed4c&eg_list=22
The Load Star. (2024). Heavy speculation in China’s container shipping futures as Gaza War drags on. Retrieved 10 May 2024 at: https://theloadstar.com/heavy-speculation-in-chinas-container-shipping-futures-as-gaza-war-drags-on/
