Lack of empty containers – Trends improve positively during the Lunar New Year
With 37.5% growth for 40HC containers and even 200% growth for 40DC containers in January vs. December 2020, the latest Container Availability Index (CAx) shows a positive trend. . for shippers and forwarders looking for container equipment in Shanghai.
Container carriers manage capacity by canceling ships in the face of a sharp drop in volumes in the first half of 2020 due to a Covid-19 blockade that leaves empty container equipment at ports in a serious shortage as shipping volumes rebound to 30% in the second half of the year.
- As a result, the Container Availability Index (CAx) from xChange containers in Shanghai fell to 0.13 in December for 40 feet dry containers and 0.08 for hi-cube containers, to any figures. any less than 0.5 is considered a deficiency. Equivalent to a 75% and 83% decrease from device availability in the first quarter of 2020.
- In some good news for shippers, the index is currently showing a positive trend of 0.34 for 20-foot dry containers and 0.37 for 40-foot dry containers according to xChange Container, and believe this does. may show a turning point as the Lunar New Year approaches.
- “With 37.5% growth for 40HC (hi-cubes) containers and even 200% growth for 40DC (dry containers) containers in January vs. December 2020, Container Availability Index (CAx ) The latest shows a positive trend for shippers and forwarders looking for container equipment in Shanghai ”, said David Amezquita, head of data insights at xChange Container.
XChange Container notes that with the active rotation of empty containers to China and the Chinese container manufacturers already at full capacity, the Lunar New Year may now be a turning point in terms of available containers.
- At another major Chinese loading port, Qingdao, the index reached 0.5, indicating a balance of supply and demand for equipment.
- Looking at some of the other major Asian ports outside of China, xChange Container also reported a strong improvement in equipment availability in January 2021 compared to December last year. Compared to December 2020, container availability increased 58% in Singapore, 35% in Nhava Sheva and 54% in Port Klang for standard containers by January 2021, xChange Container said.
However, this can be a blessing for container carriers, as it will alleviate the logistics problems they face and the problem of large-scale drop off of cargo containers, it also has the potential to lower freight rates, which have already hit record highs.
Source ST
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