Container transport again slightly more expensive

The average price for container transport by sea became slightly more expensive last week for the second week in a row. This is evident from the World Container Index of logistics service provider Drewry. On average, $9.292 now has to be paid per 40-foot container. That was a week earlier another $9.262 per container. This means that the price today is 169% above last year's level. The highest price is paid for transport from Shanghai to Rotterdam; this amounts to an amount of $13.609 per container. The Shanghai to New York route follows closely behind, with a price of $13.143 per container.

New challenges
The fact that container transport prices are so high is due to the challenges the sector faced last year. Consider supply chain disruptions, port congestion and capacity shortages. However, shippers must prepare for a new set of challenges in the coming year, Drewry said. This means that relief is not yet in sight. According to the organization, a new dispute between the ILWU union and employers in the ports of the American west coast must be taken into account. These types of disputes normally cause delays of weeks or even months in the logistics chain.  

The fact that the corona pandemic is far from over is also a challenge for the coming year. "The current corona policy - with zero tolerance in China, for example - makes it extremely likely that the ports could close overnight in the new year," the logistics service provider writes. A third problem is the disputes between carriers and forwarders. Fixed contract prices are hardly offered anymore, due to the volatility in the market. "That creates a flammable situation, and it will continue to exist next year."

As mentioned, lighting is therefore not yet an option. S&P Global Platts reports that 'early negotiations' for contract prices for next season, which starts in April, indicate continued bullishness. Freight prices could easily be 20% to 100% higher than they were this year. This is partly because the waiting times are long. The longest queue ever measured in the port complex of Los Angeles and Long Beach was recorded on Monday, December 13; 101 ships were waiting for an unloading location. The news is more positive for next week, Drewry expects a stable price trend.