There has been a 20% decline in buying and selling and leasing costs of containers from March to April, 2022, in India, as per the most recent container logistics report by Container xChange. Additionally, the decline in container costs will be traced throughout the globe in international locations akin to China, the US, Europe, the Middle East, Indian Subcontinent, and Asia. The report reveals that India had seen an ease of 20% in common costs of 20 dry cargo (DC) and 40 excessive dice (HC) commonplace delivery containers throughout the ports of Chennai, Nhava Sheva and Mundra, until the final week of April.
The disruptions have led to uncertainties within the provide chain, Christian Roeloffs, co-founder and CEO, Container xChange, stated. “However, it does seem like we have now reached the peak container turnaround times. The container demand versus supply has reached balance levels and that will mean that prices will also taper off a little bit while probably not falling steeply as is evident in the report. Beyond this, it depends on the disruptions. Once China resumes operations in full swing, there will be a pent-up demand for containers as we have season coming. This will cause a traffic jam of vessels and the demand for containers will rise causing container prices to rise again (in mid-term),” he added.
Insights from the report confirmed an 18% decline in common container costs from $4706 (INR 3,64,600) in January to $3909 (INR 3,02,852) within the first week of May, on the Nhava Sheva port. Mundra noticed a 9% drop from $4740 (INR 3,67,234) on February 24 to $4269 (INR 3,30,743) on May 3, and Chennai noticed an 18% drop in costs for 40 ft HC cargo worthy containers.
“In the long run, however, this pent-up demand for containers will eventually ease because we hope that the disruptions will end. Then, we can expect that there will be an excess of containers leading to container prices stabilising or even will fall again,” Roeloffs additional said.
As per the Container Availability Index (CAx) values, Chennai exhibited an increase in inbound containers to 0.77 on week 16 and is anticipated to retain this stage all through May. The rise in CAx worth is a sign of the rising accumulation of containers, carriers lacking calls, or an increase in clean sailings whereas outbound containers are usually not being transported on the similar fee.
Source: www.financialexpress.com”