Global Container Rates Predicted To Drop Below Pre COVID Pricing

It has recently been reported by multiple sources that a slowing of demand for shipping containers globally is driving a reduction in prices across the world, which is some much-needed relief for businesses in light of recent inflation levels.

Container xChange, a leading container trading and leasing platform, is predicting a continued decline in the cost of shipping containers throughout October and into November.

A reduction in exports from China throughout September, coupled with the impacts of war, as well as port strikes and the global economic downturn have been listed as socio-economic drivers that are decreasing demand for containers among shipping companies.

"What we now see is not unforeseen," says Container xChange CEO Christian Roeleffs.

"The slowing down of demand and the glut of oversupply of containers are all a consequence of the disruptions caused since the outbreak of the pandemic. It is like the classic boom and bust cycle."

Roeleffs states that there are relatively low order numbers in the market when compared to the inventory of containers available with retailers and bigger shippers being cautious about the outlook for the months ahead and ordering less.

"On the other hand, the congestion is easing with vessel waiting times reducing, ports operating at less capacity, and the container turnaround times decreasing which ultimately, frees up the capacity in the market," Roeloffs added.

The xChange data reveals another key trend with early signs of companies trying to diversify their container sourcing strategy with Vietnam emerging as one of the key sourcing hubs. If you would like to discuss current rates for your business and relevant ports of interest for exporting and importing please contact our helpful and friendly sales staff at Image International Freight, we are happy to assist. Call us today on +61 2 9773 1378 or email sales@imageinternational.com.au. To source a shipping quote please click here and our team will revert as soon as possible.