As China concludes its Golden Week and the world gears up for the holiday season, Chinese retailers and shippers receive consolation gifts with the average standard container’s prices plunging for both trading and leasing in the nation.
The data collected by Container xChange shows that the average trading price in China for 40 high cube containers have fallen by 22% since week 39, just ahead of the Golden week.
Average container price which was at a high of $8516 in week 39, have now plunged to $6598 in week 42, making it the biggest decline witnessed by Chinese traders this year.
“We are experiencing improvement in market situation as the one-way leasing charges, spot rates and other freight costs are starting to stabilize and average standard container prices are witnessing a drop for the first time in many weeks. Though we are still yet to see how the market responds further to inventory stocking by the US importers in the coming months, these are good signs of market correction. The drop in prices could also possibly be only a temporary decline because of the Golden week in China if the prices do not decline further.”Christian Roeloffs, founder and CEO, Container xChange
As per the data, different ports in China have witnesses a decline in their average trading prices ranging from 1 % TO 11% for 40 high cube containers.
Qingdao has recorded the highest 11% plunge from last month, followed by Shanghai 3.4%, Ningbo 2%, Shenzhen 1.7% and Tianjin 0.5%.
Speaking of a 20 ft dry container the data reveals that the costs on an average have reduced from the last week at Shanghai port (from $3359 – $2847), Qingdao port (from $2982 – $2794) and at the Ningbo port (from $ 4300 to $3940).
46 ports globally experienced a moderate pullback in average container prices. The hotspots include China, Vietnam, and United states. All these price falls indicate improvement in congestion which caused sky rocketing freight costs all over the world.
Leasing rates fall down by 35%
The average one-way leasing pickup charges for the China-US stretch have also sloped down to $1800 from $2767 in one week (from week 39 to week 40), marking a plunge of 35%, the highest recorded this year on this stretch.
A similar reduction has been seen in stretches Ex China to few ports in Europe (Hungary, Netherlands, Slovakia) and Russian Federation.
The average one-way leasing pickup charges on the China to UK stretch have slumped by 8% from $3931 to $3621. And, at the China to Belgium stretch a 5.4% decline have been noted with prices falling from $3646 to $3450 during the same period.
“The easing prices show temporary consolation in the global container shortage crisis. There are possibilities that the trend continues because we are half way through the busiest time for the shipping industry. Retailers are looking to pile up stock ahead of the Christmas holidays and the falling prices could well become the new normal from hereon. This could probably be a very early sign of stabilization of the market. We will continue to monitor the prices and availability but for the time being, this is good news for the industry.”Dr. Johannes Schlingemeier, founder and CEO, Container xChange.
As retailers aim to dill the shelves with goods for the festive season, the demand is likely to stay strong along with the all-in rates. The situation is more likely to improve by early November and further after the Chinese New Year in February 2022