Where Are All The Containers? July 2023

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No time to read the full report? Read our short version below for our analysis of the latest trends and prices here.?

China??

Overview of container prices in June?

The dollar value of China’s exports to the US has dropped by 15.1% from January-May 2023, compared to a year ago. Exports to the European Union slumped by 4.9% in the same period. On the other hand, exports to ASEAN rose 8.1% in US dollar terms.? After an increase at the beginning of June, shipping rates from East Asia and China dropped yet again. Rates to the West Coast fell by 9%, according to the Freightos Baltic Index. And according to the Drewry World Container Index (WCI), those to North Europe by -2%. The spot rate in this case is -10% lower than in the same week in June 2019.??

On our platform, Bangkok had the highest container price spot rate for cargo-worthy 40ft boxes at $1,650 and Shenzhen had the cheapest at $910. It dropped from $1,745 in January to $975 in June, a 56.6% drop in six months.?

The average price of a cargo-worthy 40ft container in Shanghai has been falling since the beginning of this year and we noticed its biggest drop in June 2023. It dropped from $1,745 in January to $975 in June, a 56.6% drop in six months.

The Indian subcontinent and the Middle East?

Overview of container prices in June?

The FESCO Transporation Group – the biggest carrier in Russia and the terminal operator of the port of Vladivostok – has estimated that container traffic between India and Russia could grow from 76,000 TEU in 2022 to 89,000 TEU in 2023.??

India and Russia are also negotiating a free trade agreement that seeks to build closer economic ties between them. A delegation from the Ministry of Ports, Shipping and Waterways in India visited the Port of Vladivostok in May to leverage economic opportunities and support the development of the Russian Far East. It was estimated that the container turnover between India and Russia would reach 760,000 TEU per year by 2040 compared to the current 140,000 TEU.??

On the other hand, Pakistan’s Ministry of Commerce announced the Barter Trade Mechanism that lists 26 commodities that state-and privately-owned entities in Pakistan can export to the Afghanistan, Iran and Russia markets. In exchange for them, Pakistan can import crude oil, fertilizers, fruits, wheat, machinery and vegetables from them. This also applies to liquid natural gas, liquid propane gas, and chemical products.?

Russia’s Deputy Prime Minister and Industry and Trade Minister Denis Manturov said that Russia’s trade with the United Arab Emirates (UAE) increased by 68% at $9 billion in 2022 when compared to a year earlier.??

Among the Top 10 ports in the region on our platform, ports in the Middle East displayed the highest prices in the region for cargo-worthy 20ft containers. The average price in Jeddah was $1,220. Israel’s Ashdod, the UAE’s Dubai and Jebel Ali followed at an average of $1,175. The rest of the ports in the list were from the Indian subcontinent and the price of the box was the cheapest at Nhava Sheva ($894). (Drewry World Container Index (WCI) noted that stated Europe reflected the biggest year-over-year price declines, especially in the China to Europe trade lanes.?

Europe??

Overview of container prices in June?

Europe’s main ports also announced declines in throughput in the first quarter of the year. Port of Rotterdam posted an 11.6% decline in container volume to 3.2 million TEU.??

And Antwerp-Bruges announced a 5.7% drop after handling 3.1 million TEU in the first quarter during the same period. Overall, the average container price for 20ft and 40ft containers entering major Western European ports, including Rotterdam, Antwerp and Hamburg—from all global destinations—is down almost half from 2021 totals, when demand for containers was at its peak. Interestingly enough, most of the rate declines for 20ft containers had their steep decline from 2022 to 2023, while the 40ft containers had a larger fall from 2021 to 2022.?

The US?

Overview of container prices in June?

US commodity export and import containers account 73% of the Panama Canal traffic. The canal is struggling with unprecedented drought at the moment. Current vessels on the trade route or en route are 40% lighter in load. Drop in cargo-carrying capacity is a concern for shippers as it will be costlier for them to move cargo under these circumstances. Every year, cargo worth $270 billion travels through this trade. This trade route is also a critical gateway for shippers to move their cargo to the Gulf and East Coast ports. It takes containers from China 41 days to reach the East Coast ports through the Suez. The same would be 35 days if they travel through the Panama Canal, even though that’s more expensive. But this time, it could get more expensive with additional freshwater surcharges owing to the drought.??

On our platform, the average prices of cargo-worthy 40ft containers on the West Coast have fallen sharper this year as compared to the ports on the East Coast.? The average price of the box in the key ports on the West Coast was $2561 in January 2023 and $1,761 in June, thereby recording a 37% drop in six months. On the East Coast, the average price of the same container was $2,241 in January and $1,899 in June, which is a 16.5% drop.??

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 here. Get your copy of the full report here: https://www.container-xchange.com/container-logistics-update/?