There are early indicators of a rebound in Chinese container trade as the country emerges from three years of zero-Covid policy.
Container operators are expecting a rise in demand as pickup charges from China to Europe Med for 40 ft high cube containers have increased by 9.7% from US$513 in week 1 to US$563 in week 5, according to figures released by online container logistics platform, Container xChange.
Average prices for 40 ft high cube containers increased from US$3662 in week 1 in China, by 3.6% to US$3794 in week 5. Though the increase is not significant, the fact that the downward trajectory has reversed is a good sign for many in the industry.
“The rebound of trade in China, and hence the container trade rebound, will depend on the pace of the reopening in China, that is, how quickly do production volumes return to normal there,” said Christian Roeloffs, co-founder and chief executive, Container xChange.
Another key development is the increased availability of containers in China. CAx readings in key Chinese ports are elevated compared to the last three years suggesting more inbound containers and fewer outbound containers.
“The strategy of repositioning containers back to Asia after the peak season gains strength from the clearance strategy in the US and in Europe,” said Christian Roeloffs.
“This effectively takes the capacity out of the market, and we see that this has been top priority this year for carriers. The situation further helps in stabilising the prices which has been the need of the hour for the current situation of supply chain globally.
“The question is whether importers are still wary of supply chain disruptions that will influence them to buy early or will they return to the ‘just-in-time’ model,” he concluded.
