Container xChange has published new container prices data trends and insights, following the ending of Golden Week in China. The data indicates that the average standard container prices in China have eased both for trading and leasing.
Christian Roeloffs, founder and CEO, Container xChange: “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.”
The data shows average trading price of 40 high cube containers is falling in China since week 39 just ahead of the Golden week. From $8,516 in week 39, the average prices have dipped to $6,598 in week 42, a 22.5% decline.
Worldwide averages are not quite so generous in their relief, with the Drewry Container Index showing just a 0.4% for a 40ft container in the past week. The price sits at $9,865.14, 281% higher year-on-year.
At different ports in China, the average trading prices have declined ranging from 1% to 11% for 40 high cube containers at different ports in China, Qingdao recording the highest 11% plunge from last month, Ningbo 2%, Shanghai 3.4%, Shenzhen 1.7% and Tianjin 0.5%.
Dr. Johannes Schlingemeier, founder and CEO, Container xChange said: “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.”
Additionally, the average one-way leasing pickup charges for the China-US stretch are down to $1,800 from $2,767 in one week (from week 39 to week 40), a 35% plunge. These rates have also reduced for several ports in Europe including Hungary, Netherlands, and Slovakia.
The average one-way leasing pickup charges have slumped from $3931 to $3621, a decline of 8% on the China to UK stretch from week 39 to week 40. Similarly, a 5.4% decline from $3,646 to $3,450 on the China to Belgium stretch during the same period.
For insight into how these costs have weighed on the retailer prices of goods imported see CyclingIndustry.News’ report here.