China shipping: sea freight rates ease as container crisis gives way to oversupply
- Freight rates have come down by an average of 20 per cent since the beginning of 2022, data shows
- Data indicates an excess of 6 million 20-foot equivalent units of capacity in the global container fleet
The average price of a 40-foot standard high cube container has tumbled in the United States, Europe and China since last summer, data from online logistics portal Container xChange’s showed.
In Europe, average prices have fallen from above US$4,000 in August last year to US$3,455 in Hamburg and US$2,741 in Rotterdam in June. Prices have dropped from nearly US$5,500 to US$3,788 in Los Angeles over the same period.
Despite concerns about rising coronavirus cases, average prices at three major Chinese ports – Shanghai, Qingdao and Ningbo – for a 40-foot standard high cube container have fallen to between US$3,900 and US$4,200 from US$6,000 over the past 10 months.
Freight rates have come down by around an average of 20 per cent since the beginning of the year 2022 and these will continue to slide gradually
“Freight rates have come down by around an average of 20 per cent since the beginning of the year 2022 and these will continue to slide gradually,” said Johannes Schlingmeier, co-founder and CEO of Container xChange.
The oversupply of containers will mean more depot space is required, something which is already scarce, he said.