Signs of a container market rebound

Despite ongoing market fluctuations, the Container Price Sentiment Index (xCPSI) shows growth in July compared to the previous month. The forecaster also noted that container prices seem to be stabilising compared with the previous 90 days.

In July 2,570 supply chain professionals were surveyed by the xCPSI. Whilst industry opinion is mixed, 42% of respondents said they believed container prices would rise in the near future.

While some experts remain cautious, the foundation of a resilient economy, sustained consumer activity, and strategic federal investments improves the outlook,” said Christian Roeloffs, cofounder and chief executive, Container xChange.

“It’s a shipper’s market this peak season as rates stabilise at below pre-COVID levels and capacity is abundant. Prices are low and this offers a great opportunity for exporters this peak season.”

Around the world

According to Fitch Ratings, in the second quarter of 2023, China witnessed a 6% year on year increase in total container throughput, a significant improvement compared to 3% growth in first quarter of 2023.

The picture is similarly positive in the US with experts cautiously predicting an industry rebound, and in the Eurozone too, which has avoided a technical recession.

“Short-term shipping demand may experience a boost, especially for routes connected to countries with stronger growth rates like Ireland and Spain,” said Roeloffs.

“However, the potential for growth to be less robust than expected warrants cautious optimism. Prepare for potential shifts in shipping demand as companies explore more cost-efficient transport options during uncertain economic periods,” he concluded.