The oversupply of containers is contributing to second-hand container market prices plummeting, according to a new analysis from Container xChange. [6 Million Extra Containers Are Flooding the Global Supply Chain – SJ]
Freight rates have come down by approximately an average of 20 percent since the beginning of the year 2022 and these will continue to slide gradually, but there will not be a massive decrease because the underlying disruptions in the supply chain are still in place, said Container xChange, a tech platform built to simplify the logistics of container movement.
Inflation has started to stress the U.S. and the European Union economies. With inflation and pandemic-induced lockdowns, disruptions will continue to change the equation between supply, demand and prices, Container xChange said. In the longer term, these will phase out and create a new normal balance of supply and demand.
Meanwhile, Drewry’s composite World Container Index (WCI) was down 0.7 percent to $6,998.80 per 40-foot container or equivalent unit (FEU) for the week ended July 14 and declined 21 percent when compared with the same week last year. For the year to date, the average composite index of the WCI was $8,321 per FEU, which was $4,788 higher than the five-year average of $3,533 per FEU.
