14 March 2023
Freight News

Possible Rebound in Container Rates and Overflowing Warehouses in March

Container xChange’s March container market forecast indicates an anticipated rebound in container prices. The Container Price Sentiment Index (xCPSI) is expected to be positive by the beginning of March 2023

The xCPSI assesses how shipping experts around the globe expect container costs to evolve in the future. Approximately 2,700+ industry experts were surveyed and the upward pattern since the last three recordings in early March implies the industry anticipates container prices to rise shortly.

Christian Roeloffs, co-founder and CEO of Container xChange said supply is overshooting the demand for containers. “Due to this, we see ripple impacts like for example, depots working on max capacity (Depots in China for instance working on 90% utilization) and therefore, not being able to accept new clients. This is a global phenomenon now. And that is a struggle for the NVOCCs and shipping lines who want to open new markets,” commented Christian Roeloffs, co-founder and CEO of Container xChange.

Roeloffs noted that the process had already started regarding diversification of trade lanes, as evidenced by the uptick in intra-Asia trade. “In the future, the larger trades will suffer a demand decrease so capacity needs to be adjusted towards regions with more sticky demand and more stable rate levels. Supply chains will need to be more resilient in the coming years. These relocation strategies will effectively reduce reliance on one production and supply chain hub to a more diverse, smaller trading pattern,” he said.

Source: Hellenic Shipping News

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