Average container prices in China drop more than 50% year-on-year in peak season
According to an analysis published by . Container X Change.
From the forum, they state that “falling average container prices and rental rates provide good opportunities for shippers and freight When the supply chain enters peak season, they schedule the load.
Trade in China was affected in the first half of the year, but containerized trade has improved since July (2022), according to the latest monthly container logistics report published by The Container Exchange. Where are all the containers?
“Shippers are once again hopeful that exports will return to full capacity as the industry prepares for the peak season. Meanwhile, there are other reasons for shippers to rejoice, as average container prices and one-way charter rates out of China show a downward trend at a time when shipping has historically been at its height in the country »said Christian Roloff, co-founder and CEO of Container Exchange.
“Average container prices halved in August compared to a year ago. Clearly, this will allow shippers and freight forwarders to ship containers from China.” added to the executive.
The Shanghai Container Availability Index (CAx) indicates that the CAx is 0.58 in week 33, compared to 0.52 in 2021, 0.32 in 2020 and 2019 (pre-pandemic). This higher CAX price could potentially mean that there are more containers in China with lower prices than in the past three years, making it easier for carriers and carriers to plan trips from China.
“It’s peak shipping season and the industry is expecting large container flows from China to meet demand center orders. This year, we haven’t seen two major trends that are a norm during this period in previous years: an increase in rental rates and container prices in China and a decrease in CAX values.Roeloffs added.
17% reduction in one-way rental container handling rates from China to the United States from June to July.
One-way rental rates for standard containers ranged from $100 to $300 prior to June 2021 (see table above). Fees increased from July 2021 and rose to $1,470 in the month of July 2021 and peaked in September at $2,792. Then the rental rates started to drop. Rental rates, which stood at $1,277 in May of this year, fell to $1,095 in June and then to $906 in July.
On the China-Germany route, this one-way collection fee for container rental has increased from $3,394 in January 2022 to $2,428 in April and now to $1,995 in July.
One-way rental rates from China to Canada drop at the highest rate of 49% compared to any other country in China
The data shows a significant drop in average unit prices for 40HC from China to Europe and North American countries. Canada is at the forefront with a 49.4% drop in rental rates between June and July. The United States is just behind Canada with a 32.5% drop in average pickup rates or PU (pickup). For countries in Europe, average one-way fares from China fell by 16% in the UK, 13% in Germany, 18.4% in France and 17.3% in Belgium.
In Qingdao and Shanghai, CAX held above 0.5 in July and continued to rise. Consistently high CAX scores correspond to declining container charter rates and indicate relatively slow movement of boxes through these ports. Ningbo’s CAx score was below July’s 0.5, indicating more containers are leaving the port. In addition, the demand for export containers will likely be higher than full imports at the port and the acceptance of shipments will likely be delayed.
Average trade prices in China halved year-on-year in August this year
From around $5,500 for a standard freight-eligible container size in September 2021, and falling to $3,494 in May 2022, the current average trade value has fallen to $2,679 so far in August 2022. last year, in August, that average trade price was $5,470. . This month more than half of last year.
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