Price hike in container leasing market
Container leasing rates, particularly from China to North America, surged significantly in Q1/2024, continuing to stay elevated into April. The online platform Container xChange attributes this rise to a widening price gap between Chinese and US containers, with geopolitical disruptions also playing a role. For instance, leasing rates from Ningbo to Oakland saw a 92% increase from February to March 2024.
The volatility in container logistics is fuelled by both demand fluctuations and significant geopolitical tensions, such as the ongoing conflict between Israel and Hamas, which has particularly affected routes like Shanghai to Los Angeles, where rates have risen by 67%.
Additionally, container trading prices in China have shown a notable recovery this year, contrasting with declining prices in North America.
The market dynamics suggest a strong ongoing trade between China and Russia, despite lower container prices in Russia, indicating that complex market forces are at play. (pb)