September Container logistics insights by Container xChange

In a bid to constantly supply actionable insights and relevant data and analysis for your reporting on the shipping and container logistics industry, Container xChange introduces a monthly update for publishers, editors, and industry observers to deep dive into the trends seen at the global and the regional level in the industry.

This update brings insights from the platform data and the Container Availability Index 

About Container Availability Index (CAx): 

The Container Availability Index monitors and forecasts global container equipment supply by tracking millions of monthly container moves. For more information and weekly email updates, check out: https://container-xchange.com/features/cax/ 

In Container xChange’s Container Availability Index (CAx) an index reading of below 0.5 means more containers leave a port compared to the number which enter. Above 0.5 means more containers are entering the port. 

The CAx includes: 

• Gate-in and gate-out moves of containers (or import and exports of containers) 
• An estimation of manufactured containers in China 
• 20ft and 40ft containers 

The CAx does not include: 

• Empty repositioning of containers by carriers 
• Containers sold locally in certain locations 
• Exact number of manufactured containers 

We begin with the month of September to bring you the insights ahead of the holiday season and marks the busiest time for the shipping and container logistics industry.  

Global trends:  

1. The highest CAx values, exceeding 0.90 which implies that the outbound containers are lesser than the inbound containers in a particular port at a particular week (Week 40)  

• Huangpu, China 

• Dallas, TX, United states 

• Chicago, United states 

• Chittagong, Bangladesh 

• Dammam, Saudi Arabia 

• Memphis, TN, United states 

• Sines, Portugal 

• Bangkok, Thailand 

• Felixtowe, UK 

• Savannah, GA, USA 

1. The lowest CAx values in September are the following from across the ports globally, because These ports have been exporting a large number of containers for a prolonged period –  

• Ningbo, China 

• Shekou, China 

• Yantian, China 

• Tanjung Pelepas, Malaysia 

• Algeciras, Spain 

1. The most expensive average Pickup charges for one-way container leasing are being faced in China (ranging $2000 to $4500) which indicates the ever-growing difficulties exporters are facing to ship the box from China to be able to make it for the Christmas shopping season.  
2. Europe’s Container Availability Index values surpass China again. After a fall in container availability in week 36, the availability is again increasing. A trend that’s estimated to continue upwards in the coming weeks. The pressure on the Northern European ports, such as Hamburg, Antwerp, and Rotterdam, is now so high, that the container availability has exceeded the availability at the Chinese ports. Whereas the Chinese ports currently have an average value of 0.59 in the CAx, Northern Europe’s average is 0.74. 
3. Trading Insights – See below a list of the most expensive and cheapest containers available on our trading marketplace in September. Click https://container-xchange.com/container-trading/?utm_source=mailchimp&utm_medium=email&mc_cid=d95cb7fc87&mc_eid=434b4bf346  to browse through all available containers on our public search. 
4. Leasing insights – See below a list of the locations with the highest/lowest pickup charges and free-days on our container leasing platform in September.

   Pickup charges and free-days heavily depend not only on the pickup but also the drop-off location. If you’re interested in specific stretches, click – https://container-xchange.com/?utm_source=mailchimp&utm_medium=email&mc_cid=d95cb7fc87&mc_eid=434b4bf346  to browse through all available containers on our public search. 

Regional Updates – 

China – 

1. The port of Shanghai continues to show congestion, as the CAx (container availability index) shows higher values consistently (double to what it was in 2019, pre-pandemic, 0.56 in 2021, 0.48 in 2020, 0.33 in 2019). Most carriers now try to add capacity ex China to the US to make more money.  
2. The average price of a 20 ft dry container has dropped at the Ningbo port (trading data insights – from $2860 in August to $2631 in September), while in Shanghai the average container prices for the 20 ft dry containers have surged from $2631 in August to $3161 in September) 
3. Average Pick up charges for one way container leasing are at an average of $2791 in China as of September. Many of our customers are preferring to buy a container on our platform and move their freight to e.g., EU/US and then reposition it from there back to China using our platform.
4. e ports in China (namely Ningbo, Yantian and Shekou) consistently over the past few weeks have dropped their CAx values, meaning the ports are exporting enormous number of containers out than the inbound containers. However, there are more inbound containers at the Yantian port than the last year at this time of the year (CAx 0.31 in 2021, 0.06 in 2020, 5X jump) 
5. If you have cargo in China: Getting a hold of containers in China and Asia will cost you a higher price, simply because of the current market. That goes both for one-way leasing and buying a box. With the demand overshadowing the supply, prices unavoidably go up.

   If you want cargo to China: Then you might have a golden opportunity at hand. Despite the slower processing of containers at many European ports, you have a better shot at getting your hands on some metal boxes. That’s regardless of whether you buy or lease them. However, if you lease a container, container owners will pay you money to move their boxes back to Asia on certain stretches. 

Vietnam –  

1. A massively elevated level of CAx values at the Ho Chi Minh City port is experienced if compared to the past two years. Almost 6X from the last year and 3X from 2019, pre-pandemic times. This shows the general level of inbound containers have increased and the imports are higher and/or exports are getting affected from a long period of time. (0.16 in 2020 and 0.90 in 2021, while the pre-pandemic level at week 40 was 0.37) 
2. Container availability index (CAx) – Hai Phong witnesses rise in inbound containers, leading to higher CAx values, 3X of what it was last year around the same time. 
3. Trading insights – The average price of a 20 ft dry container at Haiphong port has dropped from $2400 in August to $2080 in September. However, at the Ho Chi Minh City port the average prices of the same box have soared to $2500 in September from $1792 in June.  

India –  

1. Record high CAx values of containers at the JN port, India (Nhava Sheva) this year at week 40, CAx values at 0.84, (0.49 in 2020 and 0.62 in 2019). The general trend in India at this time of the year was a lower CAx values throughout the past years before the pandemic hit, owing to more outbound containers ahead of the holiday season. However, across the three major ports in India (Nhava Sheva, Chennai and Mundra) the CAx values are on an average 3X the values from 2019 which was the pre-pandemic time. This shows that either there are more inbound containers in India as compared to the past years or there are more blank sailings than ever from India.  
2. Average Pickup charges of one-way leasing containers in India which were almost nothing in January in 2021 have now reached $400 from $350 last month. This shows the rising difficulties for exporters to get the boxes out of the country as compared to the last year.
3. Trading Insights – The average price of a 20 ft dry container for trading in India is $2407. A jump of 18% from May this year. For a 40 ft dry container, the average prices have jumped to $3597 in September, an 11% jump from May this year.  

USA –  

1. The CAx values are consistently touching 0.90 and above in New York which shows that imports are consistently higher and outbound containers are lower than inbound containers.  
2. Long beach continues to grapple with the congestion problem, CAx values at an all-time high 

Europe–  

1. The average prices of 40ft Dry containers at the Rotterdam port have increased by 29.5% from May to September 
2. CAx values are on an average double in 2021 from the last year at the ports of Antwerp and Hamburg during September, implying more inbound containers at these ports.  

Commentary on the global container logistics industry –  

“We witness slight/marginal dip in container trading prices at few locations like Ningbo but the broader trend across the ports is that the prices are constantly increasing across the world. The CAx values suggest that there is probable container demand at almost every port that we monitor. Blank sailings are on the rise. The situation will stabilize only after the end of next year according to our forecasts.” 

“The containers transacted on our platform are increasing at very encouraging rate which is mirroring the increasing digital adoption by container logistics industry to cope with such unprecedented times. The key to bring about efficiency in operations is a well-planned container movement.” said Dr. Johannes Schlingemeier, cofounder and CEO, Container xChange.

“The container logistics industry has been pushed to adopt digital technology since these past 18 months. The pandemic led to astronomically soaring prices and a complete shattering of the global supply chain. The otherwise traditional container logistics industry was left with no choice but to find alternatives to finding containers, save costs and prevent blank sailings. The customer base at xChange has grown 3X over the past 18 months and this is just the beginning of digitization for many containers logistic firms. We foresee more value that we are able to create in the times to come as the market will take more time to recover and adjust to normalcy.” said Christian Roeloffs, co-founder and CEO, Container xChange.