Container Rates Surge Amid the Red Sea Crisis
• Average container trading prices surge by up to 60% in January’24
• Container leasing rates Ex China rise by up to 323%
• Supply Chain professionals expect Container prices to surge further in February: xCPSI (Container Price Sentiment Index by Container xChange)
In response to the escalating Red Sea crisis, Container xChange, a leading online container logistics platform, has released a comprehensive report detailing the far-reaching effects on container trading and leasing rates worldwide. The report explores the intricate dynamics of the crisis, shedding light on the unprecedented surge in container prices and leasing rates, as well as the ripple effect on global trade routes.
Impact of Red Sea Attacks on Container Prices
As container vessels take longer routes, capacity constraints contribute to a revival in container rates. The China to Europe trade lane has witnessed significant surges, with trading spot rates soaring in key Chinese ports. The disruptions are not confined to China; leasing rates bound for Hamburg, Germany have doubled since January 1, 2024.
Weekly China – Europe Trading spot rates continue to shoot up
Trading spot rates for 40ft high cube cargo-worthy containers have witnessed a significant surge in key Chinese ports. Noticeable week-on-week increases have been recorded in Xiamen (23%), Shekou (19%), Guangzhou (10%), Huangpu (8%), and Nansha (8%).
Container Leasing Rates continue to rise
Container leasing spot rates have mirrored the spikes observed in trading prices, especially in the China to Europe route. Rates have steadily increased, reaching notable highs.
Top Trade routes with highest month-on-month rate hikes
In the period from January 1 to January 30, 2024, leasing rates for routes bound to Hamburg have shown a substantial increase. These figures highlight a significant upward trend in leasing rates during the specified timeframe, illustrating the impactful changes in the market.
Industries Impacted by Red Sea Turmoil
The longer disruptions at the Red Sea trade route pose a significant threat to various industries, including automobiles, electronics, chemicals, consumer goods, machinery, and pharmaceuticals.
Outlook: January’s Remarkably Positive Outlook on Container Price Development Amid Red Sea Turmoil
Throughout January 2024, the Container Price Sentiment Index (xCPSI) consistently maintained historically elevated levels, reflecting a widespread belief that container prices would continue to soar due to the ongoing Red Sea crisis.
About Container xChange
Container xChange serves as a global online platform facilitating container leasing and trading, connecting container users with owners. The platform streamlines the process of finding and exchanging containers, optimizing fleet management, and fostering collaboration across the shipping industry.