High container demand raises Singapore prices
Recent data from Container xChange indicates a significant rise in container prices and leasing rates at the port of Singapore due to global congestion. From October 2023 to May 2024, average container prices surged by 26%, while leasing rates on routes such as China to the USA have doubled since November.
Factors contributing to this situation include vessel bunching, disrupted global shipping schedules, and heightened demand for container handling capacity. The congestion in Singapore is expected to continue beyond June, impacting global trade flows. Similar trends are observed in Vietnam and China. Shipping lines are increasing fleet capacities, and some carriers are diverting operations to other regional ports to mitigate delays. (pb)