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Box leasing rates in China have fallen near US$804 for each one-way pick-up 40-foot container these days, 70% down from nearly $2,730 at their peak in September 2021
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Container xChange says the price slide is steady and steeper on the China-US lane
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Globally, the costliest box-trading place is Boston, where a cargo-worthy box averages $3,745 in December, followed by Christchurch at $2,950 and Jeddah at $2,900
China box leasing rates have fallen to around US$804 for each one-way, pick-up 40-container box in December, a 70% drop from nearly $2,730 round-up charges at their peak in September 2021, and prices are falling further, Container xChange reports.
The decline is steeper on the China-US lane, said the container leasing platform. While the average one-way pick-up charge for standard containers was $2,792 in September last year, it has plunged to $341 this December.
The pick-up charges for containers for the China-EU trade have been declining as well, Container xChange said.
The report said the general trend of average prices for standard containers in China is moving towards a decline but on a relatively less steep trajectory than on the leasing market.
This trend reflects on the average container prices in the United States, Container xChange said.
“We witness a global average of $3,300-$3,700 for average container prices in Asia, Europe and the US. The variation is not significant,” Container xChange said.
The current lease rate slide contrasts with the market mood in August, when Southeast Asian peak season container prices climbed 36% and one-way leasing rates rose 21% amid strong demand. At the time, COVID-wary China was already seeing box demand decline, Container xChange reported.
This trend of rising peak season container prices and leasing rates in Vietnam, Malaysia and Singapore, among other Southeast Asian countries, validates the “China Plus One” strategy adopted by foreign companies
The report said the average prices for all the standard containers in China are falling month on month, reaching below pre-COVID levels.
At the same time, pick-up charges for containers from China to the US and Europe continue to free fall. These are sure indicators of the cooling of the cargo market on these stretches, said the report.
For 40-foot high-cube containers, Container xChange has listed where the most expensive and least expensive locations are for container trading.
Boston remains the most expensive location for container trading globally in December. The average price of a cargo-worthy container in Boston is $3,745, followed by Christchurch at $2,950 and Jeddah at $2,900 this month.
RELATED READ: Supply glut aiding 2nd-hand container price slide
The biggest increase in container prices was seen in Northern Europe, where the average container price has increased by 23.5%, said the report.
The Container Availability Index (CAx) is at its highest at 2022, compared with 2021 and 2020 for Shanghai. This means that either there are not enough containers leaving the port or there are more inbound containers entering the port.
“We see a more evident gap in the CAx figures at ports like Ningbo,” Container xChange said.
