Where Are All the Containers? August 2024

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Asia

Overview of container leasing rates

We found that the container leasing rate for a 40ft container from Shanghai to Los Angeles was $820 in August 2024—indicating a drop of 33% from the last week of July. Conversely, the leasing rate from Shanghai to New York rose from $1,200 in July to $1,500 in August, marking a 25% increase.

Container spot rates indicate potential plateau

Following a sustained period of unprecedented growth, container spot rates are now showing signs of stabilization.

Throughout July, Shanghai Containerized Freight Index (SCFI), which tracks changes in spot rates for shipping containers on various routes originating from Shanghai, showed a decline. This decline is primarily driven by the Shanghai-US West Coast trade, a high-volume lane unaffected by Red Sea diversions.

Drewry’s World Container Index (WCI) presents a similar narrative, identifying the Shanghai-US West Coast market as the main contributor to easing rates.

The ISC and ME

Container price trends

The average price of a cargo-worthy 20ft container in India was $1,010 in August 2024. Container prices have dropped in India since their surge in the first week of July.

India-North America trade lane faces major overhaul amid capacity concerns

The India-North America trade lane is anticipated to gain momentum in the long term due to trade diversification within Asia, with significant changes expected in ocean network operations. As part of these changes, Hapag-Lloyd has withdrawn from the India-North America (Indamex) service, which it co-operated with CMA CGM for many years.

To replace the service, Hapag-Lloyd has introduced a standalone service called TPI. Simultaneously, CMA CGM has launched a revamped India-USEC route, merging the two Indamex strings into a single loop.

These changes are intended to improve efficiency and service reliability on the trade lane. However, Indian freight forwarders are concerned about carriers refusing gate openings for containers with confirmed bookings, particularly as major liners on this trade lane have reported full ships, leading to more frequent cargo rollovers.

Europe

Leasing rate overview

The average container leasing rate for a 40ft HC container from Ningbo to ports in Europe is $1,906 in August, a slight decrease from $2,193 in July 2024.

Asia-Europe trade route sees major capacity surge

Major ocean carriers have added nearly 250,000 TEUs of additional capacity to the Asia-Europe container route this year. Of these, 641,770 TEUs across 41 ships are scheduled to move from Asian and Indian subcontinent ports to Northern European and Mediterranean ports. In comparison, 42 ships with a total capacity of 390,696 TEUs have been deployed on the Asia-US trade route.

This capacity imbalance between the two routes is largely due to the deployment of super-post-Panamax ships, which can carry over 20,000 TEUs.

The US

Average container price update

The average price of a cargo-worthy 40ft container in the US was $1,353 in August 2024, with prices highest in Los Angeles at $1,430, and lowest in New York at $1,290.

Potential strike threatens East and Gulf Coast ports operations

The threat of a strike at East and Gulf Coast ports could adversely affect port operations in both the US and Canada. The current master contract between the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) is set to expire on September 30, with renewed contract negotiations yet to begin due to a disagreement over port automation.

A major point of contention has been the union’s strong opposition to port automation, particularly the implementation of an auto gate system at the Port of Mobile. This system processes trucks without ILA labor, which the union claims violates the current master contract.

And that’s a wrap! If you want more details about the global supply chains along with some smart container shipping routes, prices, pickup rates and the hot trading and leasing stretches on Container xChange, download our monthly research report.

Get your copy of the full report, download WAATC August here.

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