Containerised trade picks up in China to fulfil the demand for the peak shipping season and the container rates have so far not picked up, according to an analysis published by technology marketplace and operating platform for container logistic companies, ContainerxChange.
The analysis, part of the monthly container logistics report published by ContainerxChange "Where Are All The Containers" — said average container prices have declined in China to more than half from the last year in August.
"The decline in average container prices and leasing rates offer good opportunities for shippers and freight forwarding companies to plan cargo as the supply chain braces for the peak season, typically from July to September," ContainerxChange added.
In its analysis, ContainerxChange noted that the Shanghai Container Availability index (CAx) indicates that the CAx is 0.58 in week 33 as compared to 0.52 in 2021, 0.32 in 2020 and 2019 (pre-pandemic).
It said that this could potentially mean that there are "more containers in China with reduced prices, making it lucrative for shippers and freight forwarders to plan cargo trips from China."
"This is the peak shipping season, and the industry expects heavy outflow of containers from China to fulfil orders from demand centres," said Christian Roeloffs, cofounder and CEO, ContainerxChange.
"This year, we haven't witnessed two key trends that are a norm during this time in previous years – a rise in leasing rates and container prices in China and a decline in CAx values," Roeloffs added.
Meanwhile, the report noted a 17% decline in one-way leasing pick-up rates of containers from China to the US from June to July.
Photo: ContainerxChange
It added that one-way leasing rates for standard containers, were in the range of US$100-US$300 before June 2021 and the rates picked up from July 2021 skyrocketing at US$1470 in the month of July 2021 and peaking by September to reach US$2792.
"The leasing rates then started to decline. This year in May, the leasing rates stood at US$1277, plummeting to US$1095 in June and further to US$906 in the month of July," ContainerxChange added.
On China to Germany stretch, the report said these one-way pick-up rates for leasing containers plummeted from US$3394 in January 2022, further to US$2428 in April and now to US$1995 in the month of July.
The report said China to Canada one-way leasing rates decline at the highest rate at 49% as compared China to any other country.
"The data shows a significant drop in the average per unit rates for 40HCs from China to Europe and North American countries. Canada is leading the fall with a 49.4% drop in the leasing rates between June and July," it added.
"Right behind Canada is the US with a 32.5% drop in the average pick-up or PU (Pick Up) rates. For countries in Europe, the average one-way PU charges from China dropped by 16% in the UK, 13% in Germany, 18.4% in France, and 17.3% in Belgium."
In Qingdao and Shanghai, ContainerxChange said CAx remained over 0.5, in July, and continued increasing — the continued high CAx scores align with the decreased container rental fees and indicate a comparatively slowed-down movement of boxes at these ports, it added.
"Ningbo's CAx scores were lower than 0.5 in July indicating that more containers are leaving the port. And, that there's probably more demand for export containers than full imports at the port and a likely delays cargo acceptance," the report further said.