During the past period, container prices have increased with no sign of stopping, and container volumes have decreased significantly, especially when operations at ports in Yantian were interrupted. Meanwhile, ports in Ningbo (China) and also in Vietnam are at risk of a similar situation.
According to data from Container xChange, the Covid-19 pandemic-related closure regulations at China’s southern central port of Yantian in June caused container prices to skyrocket by 180%.
The container leasing and trading platform CAx index shows that the average price of containers of all sizes from Yantian has increased from $5,515 in June to $15,336 this month.
Mr. Christian Roeloffs, co-founder of Container xChange, said: “Throughout June, the price of containers has increased with no signs of stopping, and the volume of containers has decreased significantly, especially when operations at ports in Yantian were closed. discontinuity”.
Notably, Container xChange’s representative emphasized, at ports in Ningbo (China) and also in Vietnam, there are “early signs” of similar impacts from recent port disruptions. .
Container xChange CEO and founder, Johannes Schlingmeier, said: “But even without disruptions, there will be severe material shortages due to strong demand, coupled with congestion. The worsening port situation will also cause the price of both old and new containers to increase sharply.
Mr. Schlingmeier added: “There is a high probability that container prices will continue to increase, due to a shortage of containers in the coming weeks due to schedule delays with many containers still waiting in line.”
The Loadstar reported that a UK-based shipping company (NVOCC) recently purchased 10 40ft containers in China to fix problems with the containers they leased from carriers. However, in the end, this business spent nearly 6,000 USD for an old container from China.
In theory, manufacturers are selling similar new containers for around $4,000. Meanwhile, rental companies and carriers are restricting orders. “However, new containers are now as rare as gold, which is difficult for ordinary buyers, even with money, to access,” the NVOCC representative shared.
Along with that, ocean carriers are doing their best to increase their container fleets to meet the increasing demand, along with minimizing the impact of delays with containers.
According to Hapag-Lloyd CEO Rolf Habben Jansen, due to network congestion, carriers now need 11% more of the containers they have, to carry the same amount of cargo than before.
In addition, the shutdown of installations at factories means carriers have to rely even more on leasing companies to meet their urgent supply needs.
Triton, the market leader in container leasing, said in its second-quarter earnings report that it is focusing on extending the term of both new and old container leases with shipping lines. In Q2 2021, the business recorded an average lease term of 14 years, up from the 10-year average in Q1, and almost double the historical industry average.
Or like Textainer – the world’s second largest container charter company, reported that in the first 6 months of the year, the average lease term for new containers was 12 years, while the average lease term for ships was about 4 years. million teu is 6 years.
Similar to container ship owners, charterers not only gain more complete unit leases with carriers, but they can also negotiate significantly higher rates with new deals. .
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