Container xChange, the global online marketplace for container trading and leasing, released new data that provides insights into the latest container leasing rate trends from China to the United States and Europe. As the global container shipping industry faces ongoing challenges, the data indicates a plateauing trend in container leasing rates, with significant regional variations.
According to the U.S. Census Bureau, U.S. retail sales demonstrated resilience, reaching US$615.00 billion in July 2024, a 1.08% increase from the previous month and a 2.55% rise compared to the same period last year. This growth, coupled with a 0.3% month-over-month increase in wholesale inventories and a 0.8% rise in retail inventories, indicates that businesses are gearing up for the upcoming peak season. However, the key question remains how consumer demand will unfold in the coming months, which will determine the effectiveness of this inventory buildup.
The current situation is a very crucial one for the container shipping industry because the consumer demand momentum for the peak season will determine further container price development in the near term.
According to the global container market forecaster published by Container xChange, the global Container Price Sentiment Index (xCPSI) peaked at 83 in May, reflecting strong optimism for rising container prices. However, by mid-August, the index had moderated to around 39. Each week, we survey supply chain professionals on their expectations for future container prices, and from this data, we compute and index the sentiment to generate our Container Price Sentiment Index (xCPSI).
China to U.S. Leasing Rates: Stabilizing After Steady Increases
According to Container xChange, average one-way leasing charges for 40 ft high cube containers from China to the U.S. saw a noticeable increase from July to August 2024. Key stretches such as:
- Ningbo to Seattle: Leasing rates increased from US$695 in July to US$858 in August.
- Qingdao to Seattle: Rates rose from US$1,334 in July to US$1,545 in August.
- Shanghai to Savannah: Rates climbed from US$1,245 in July to US$1,336 in August.
- Shenzhen to Savannah: Rates jumped from US$1,530 in July to US$1,830 in August.
- Shenzhen to Seattle: Rates surged from US$1,106 in July to US$1,482 in August.
While these routes experienced rising leasing rates, other stretches from China to the U.S. have seen decreases, signalling that the upward trend may be starting to plateau.
This stabilization is in line with broader market trends observed in average container prices for trading, which have also shown signs of levelling off.
China to Europe: Rates Peaking After Prolonged Increases
Container leasing rates from China to Europe followed a similar pattern, with prices increasing steadily until June 2024. Since then, rates have plateaued, with some routes even reporting slight declines.
Regional Volatility in August 2024
The global container market also witnessed significant regional volatility in August 2024. Central Asia reported the highest container spot rate increase, with prices rising by an average of 40%. The Middle East & Indian Subcontinent region followed with a 10% increase, while Japan & Korea experienced an 8% hike. These regional disparities highlight the complexities of the global container market and the varying demand dynamics across different regions.
“As we move through 2024, the stabilization of container leasing rates, particularly from China to key global destinations, reflects a market that is adjusting to ongoing disruptions and evolving demand. While we are seeing plateauing rates, it’s crucial to monitor these trends closely, especially with the upcoming Golden Week in China and potential shifts in global economic conditions,” commented the findings, Christian Roeloffs, CEO of Container xChange.
This article was written by Christian Roeloffs, CEO of Container xChange
