Where Are All the Containers? September 2024
To read the full report with information, prices and hot shipping routes, download WAATC September here.
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Asia
Overview of container leasing rates
The average container leasing rate for a 20ft container from Shanghai to European ports is $350 in September 2024, reflecting a slight increase from $325 in the last week of August 2024. The average leasing rate from Shanghai to US ports is $520.
Container manufacturing in China hits record highs in 2024
Container manufacturing is expected to reach near-record levels in 2024, with production surging to all-time highs in the second quarter. In July alone, the production of dry cargo and reefer containers surpassed 850,000 TEUs. This uptick is partly driven by longer transit times on key shipping routes due to the Red Sea crisis, which has necessitated the deployment of additional vessels in the Asia-North Europe loops.
In preparation for the Golden Week, ocean carriers have canceled several export sailings from Asia to Europe and the US to prevent a collapse in container spot rates. Professionals expect more void sailings this year during the low-demand weeks of the slack season.
The ISC and ME
Container price trends
The average price of a cargo-worthy 20ft container in India is $1,113 as of September 2024, reflecting a slight increase from $1,010 in August.
India dodges port strike crisis with new worker deal
A nationwide strike by Indian port workers, expected to begin on August 28 across 12 major ports, has been called off. The strike was averted following a successful negotiation between the Indian Ports’ Association (IPA) and the representatives of port and dock workers’ unions, resulting in an agreement that includes wage increases and additional benefits for around 20,000 workers.
Vessel schedules are already impacted by diversions related to the Red Sea crisis, leading to frequent changes in gate cut-off times for export cargo. A nationwide port strike, even with localized impacts, could have severely disrupted cargo flows, especially during the peak shipping season as exporters strive to maximize shipments.
Europe
Average container prices
Our data reveals that the average price of a cargo-worthy 40ft container at European ports is $1,170 in September 2024, with the highest prices in Bremen and the lowest in Antwerp.
German port pay disputes cast shadow on supply chains
Germany’s port workers, represented by the trade union ver.di, are facing ongoing negotiations with the Central Association of German Seaport Operators (ZDS) over a new collective agreement. The dispute stems from disagreements over wage increases, inflation compensation, and shift bonuses.
During the fifth round of negotiations in September, ZDS presented a new collective agreement representing 11,500 employees at the German North Sea ports. If the offer is rejected, further strikes could occur, coinciding with peak shipping season, which could severely impact supply chains, especially for industries like automotive and machinery.
The US
Container price overview
As of September 2024, the average price of a cargo-worthy 40ft container in the US is $1,376. Prices are highest in Los Angeles at $1,460, and lowest in New York at $1,260.
US port strike threatens East Coast bottlenecks and cost hikes
The looming threat of a port strike in the US is raising serious concerns for the global shipping industry. Shippers are expected to feel the most impact from these disruptions, facing increased costs as they reroute goods through more distant ports. Rates to the US West Coast could surge, as shippers divert volumes away from the East Coast. Backlogs at Gulf and East Coast ports would further strain capacity, driving up prices.
Canada’s supply chain faces a new threat as port workers in British Columbia may soon go on strike. Local 514 of the International Longshore Warehouse Union (ILWU) recently secured a mandate in September to strike. This follows the expiration of their agreement with the British Columbia Maritime Employers Association (BCMEA) on March 31, 2023.
Get your copy of the full report, download WAATC September here.
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