China shipping container prices surge twofold, leasing rates spike threefold

The average container prices in China have reached its highest in two years, at $3600 this week for 40 ft high cube cargo worthy containers in China. These prices were somewhere around $1700 in March – April 2024. This is a 112% increase in a span of two months.??

Note: The average container prices as recorded from customer interactions are yet to be reflected in the chart above. According to the chart, it shows the average prices at $3250 as on 24 June 2024.??

While the average container prices (for purchasing containers) are on a significantly upward trend, the average one-way pick-up charges (for leasing containers) continue to develop at a staggering rate so far in June.???

The chart below illustrates the development of average pick-up charges for 40 ft high cube cargo-worthy containers from the peak COVID-19 period until June-2024, focusing on routes from China to the US and Europe.?

Average one-way pickup charges for 40 ft HC cargo worthy containers (in USD)

“While prices and rates are significantly up, trading volumes have decreased as buyers are becoming more cautious. This trend potentially indicates a potential reversal of prices in the near future, as the market adjusts to the current disruptions and the high levels of volatility.” shared Christian Roeloffs, cofounder and CEO of Container xChange.??

Leasing rates on the China to Europe stretch rise by 3X?

?The average pickup charges ex Shanghai to Rotterdam were somewhere around $500 in November 2023 which are now 3X, somewhere around $1700, to Hamburg is $2030 and to Antwerp is $1888 (as on 23 June 2024).?

Leasing rates double on China to US stretch in June?

Overall, the pickup charges doubled since November until June Ex Shanghai to key ports in the US. Shanghai to New York rates were around $568 in November 2023, which are now at $1200 so far in June 2024. Shanghai to Oakland rates were $370 in November 2023 which are now at $1663 as on 23 June 2024. Shanghai to Los Angeles rates were $643 in November 2023, reaching to $1107 as on 23 June 2024. Shanghai to Long Beach pickup charges also spiked from $610 to $1230 in the same duration.??

We see similar trends Ex Ningbo, Qingdao and Shenzhen (barring Tianjin).??

“We witness asking rates for leasing containers reaching $2600 this week in China. This is crazy. These pickup charges were not more than $300 only until October last year, and without any significant demand surge from the consumer side, these prices are increasing only because of the disruptions at sea and not driven by demand, which worries us because this means it’s not sustainable, highly volatile.” Shared a Container xChange customer from China, a container supplier based in Shanghai.??

“The buyers and the lessees are waiting it out, hoping that this wave will wane out. But we do not see any immediate correction, as the market is too active, and freight demand continues to remain strong here in China.” The customer added.??

Read more about the Impact of positive US retail trends on China container demand, China container market outlook, growth in China’s container throughput?and impact of Sanctions and Tariffs to Impact Euro-China Trade here