Average container prices have dropped more than half from last year’s prices. China has accumulated containerized trade volumes recently, according to a new analysis. The analysis is done by Container xChange and is part of a monthly container logistics report called “Where Are All the Containers?”.
Changes in Container Prices
The average container price has been reduced by half (on average) since August 2021. Leasing rates have also dropped 17% from June to July of 2022. Additionally, one-way leasing rates from China to Canada declined at the highest rate yet – 49%. This decline in average container prices and leasing rates creates promising opportunities for shippers and freight companies to plan cargo. The industry is in the middle of the peak season, usually from late summer to early fall. As a result, this is an excellent time for container prices to see a reduction.
Trade in China
During the first half of 2022, China saw some declines in trade numbers. However, the containerized trade has increased since July, according to Container xChange. Shanghai Container Availability index (CAx) shows that the CAx is 0.58 in week 33, compared to 0.52 in 2021. This means that there could be more containers in China with reduced prices, making it easier for shippers to plan routes from China. “This is the peak shipping season, and the industry expects heavy outflow of containers from China to fulfill orders from demand centers. This year, we haven’t witnessed two key trends that are a norm during this time in previous years – a rise in leasing rates and container prices in China and a decline in CAx values,” said Christian Roeloffs, Co-founder and CEO of Container xChange.
We have been tracking many positive developments and current logistic industry trends. But no matter what happens in the future, you can always count on All Points Container Line for reliable and affordable shipping options.