Where Are All the Containers? June 2024

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Asia

Overview of container leasing rates

The average container leasing rate of a 20ft container from Singapore to the US is $335. The average rate from Singapore to cities in Canada is $226.

Critical Singapore port congestion disrupts global shipping

Congestion at Singapore, the world’s second-busiest transshipment port, has reached critical levels, exacerbating the global shortage of vessel capacity and containers. Containerships had to wait up to 7 days to berth in Singapore in the last week of May, with queues reaching up to 450,000 TEUs.

Severe congestion is forcing some carriers to skip planned port calls in Singapore, worsening issues at downstream ports that must handle additional volumes. The delays are causing vessel bunching, leading to spillover congestion and schedule disruptions.

The ISC and Middle East

Overview of container prices

Our data indicates that the container price for a 20ft cargo-worthy container in May was $996 on average. The prices have increased slightly from $906 in April 2024.

Indian ports showcase resilience amid Singapore congestion

Mediterranean Shipping Company (MSC), the world’s largest container carrier, is increasingly using Indian ports such as Kamarajar and Visakhapatnam for transshipment due to congestion in Singapore.

Visakha Container Terminal (VCT) at the Visakhapatnam port handled 70,000 TEUs in May, largely due to this transshipment shift. APSEZ’s flagship port at Mundra has also benefited by recently docking ‘MSC Anna,’ the largest container ship to visit an Indian port. During its visit, the ship loaded and unloaded 12,500 TEUs. While port congestion remains a significant issue in Singapore, Indian ports are experiencing increased activity as they handle additional volumes.

Europe

Overview of container leasing rates

Our data indicates that the container leasing rate for a 40ft HC container from China to ports in Europe in June is $1,373 on average. Rates have increased from $1,000 in May—up by 27.16% in just a month.

Surge in blank sailings disrupts Asia-Europe trade

Significant disruptions have occurred in the Asia-North Europe trade since April 2024. A sudden surge in demand has led to tight space and a rapid rise in spot rate.

Now, another disruptive trend has emerged on this route—blank sailing. Data from the eeSea liner database indicates that April saw capacity reductions of nearly 25% from what was previously advertised. In April, carriers had scheduled 1.68 million TEUs of capacity, but only 1.29 million TEUs sailed. This shortfall of 397,000 TEUs, equivalent to about 200,000 FEUs, was due to blank sailings, omissions, and delayed arrivals. Consequently, only 128 container vessels arrived in North Europe, compared to the 169 that had been advertised.

The US

Container price overview

The container leasing rate for a 40ft HC container from China to ports in the US is $1,113. The rates have increased from $740 in May, marking a 31.71% increase.

Early peak shipping season in the US fuels freight rates further

A confluence of factors in global trade is causing a severe shortage of shipping containers, resulting in a sharp increase in ocean freight rates. The early peak shipping season in the US, longer transit times due to rerouting around the Red Sea, bad weather and port congestion in Asia have disrupted key trade routes.

This supply chain challenge arises as consumer goods for the back-to-school and holiday seasons are set to be shipped. These disruptions are driving up freight rates. Since the end of April they began spiking by as much as $1,500, on average, on routes to the US. This situation echoes the chaos of the Covid-19 pandemic when the lack of shipping capacity.

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.

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