Container prices are falling slightly, but for how long?

The World Container Index of Drewry shows a drop of 2,9% to $9.419 per 40-foot container for this week. This means that the price is currently 79% above the price level of last year. Transport from Shanghai to Los Angeles and from Shanghai to New York fell the most in price (-5%). Freightos notes an amount of $15.485 per container for transport from Asia to the west coast of the United States. For transport to the east coast of the United States, an average of $16.781 per 40-foot container has to be paid. Both price level are approximately equal to last week.

Not surprisingly, container shipping from Asia is cheaper this week. Many employees in China have one week of vacation in the context of Chinese New Year, which is celebrated on February 1. Production in Chinese factories is therefore always somewhat lower during this period of the year. Although there are still delays in Chinese ports. Both Drewry and Freightos expect the holiday to keep transport costs stable next week. They do wonder, however, whether this sentiment can hold up when production picks up again.

Bears on the road
ING Research also sees some obstacles in the way for this year. Higher labor costs, higher fuel prices and higher equipment costs will certainly put broader price pressures in transport this year, the bank's researchers write in a new analysis. “The inefficiency of supply chain disruption adds to this.” Although the bank acknowledges that container prices do not provide a representative picture of the entire transport sector, it does state that road transport is also expected to become more expensive for companies in the construction, retail and industrial sectors this year. The staff shortage plays a role in this, among other things.

Figures show that in the third quarter of last year, the transport and logistics industry saw a record 53 job openings for every 11.650 employees. In road transport, that figure is even twice as high. "According to the UWV, there were 55 vacancies for truck drivers in that quarter. This equates to one vacancy for every eight workers. We expect – also in view of the fact that one in three drivers is older than XNUMX years – a shortage this year. increasing rather than decreasing."