The little increase in container costs is positive for the shipping industry, according to a monthly report by a leading online platform.
Due to industrial closures caused by the coronavirus outbreak and the Lunar New Year vacation, there were more inbound containers than departing containers in January.
According to a recent study, traders and operators of containers are anticipating a surge in demand following China’s reopening, as seen by an increase in the pricing and lease rates of second-hand containers in China last month.
The container-trade rebound will depend on the pace of the reopening and the rebound of trade in China- how quickly production volumes return to normal, cited the container logistics and operations online platform.
The monthly analysis by the container logistics and operations online platform also found that ports in China were busier in January than in the previous three years, with fewer departing containers than inbound containers.
This repositioning of containers back to Asia from the US and Europe also indicates the importers’ post-peak season clearing plan. While factories were closed last month due to the spread of Covid-19 and the Lunar New Year holiday, and a labor shortage, container congestion is also consistent with the situation in China.
The industry anticipates a recovery in demand, as seen by the rise in indicators in January, such as container pickup costs from China to Europe and average pricing for typical 40-foot shipping containers in China.
The report highlighted that although the increases in these numbers were not very significant, they were still encouraging news for many in the sector. In four weeks, the pickup fee jumped by 9.7% while the container price climbed by 3.6%.
The container logistics and operations online platform states that the outcome of China’s export recovery will be significantly influenced by what importers of commodities predict, regarding supply-chain disruptions in China.
