News Details

Average shipping container prices decline at ports of Los Angeles, Long Beach; logjam still unabated


Container xChange, the world’s leading tech company for container trading and leasing, has published container prices and availability data across the key ports of the United States. As majority of ports in the United States struggle to process the soaring flow of inbound containers, the average shipping container prices fell in the month of October by an average of 10% at the ports of LA, LB and more recently the port of Savannah too. Ports in the US are showing very high Container Availability Index (CAx) values consistently as compared to 2020 and 2019 (pre-pandemic times). On a global scale, about 78 ports recorded CAx values higher than 0.50 (0.50 represents the ideal balance of inbound and outbound containers), said a release. 


As per the data, the average prices for 40 ft High cube containers have dropped by 10.7% from $4,863 to $4,342 from August to November at the port of Long Beach.


At the port of Los Angeles, a 20 ft dry container costs $1,850 and a 40 High cube costs around $4,342. There has been a decline in the average prices for a 40 ft high cube container since August this year at Los Angeles port.


Overall, the average one-way container leasing pick-up charges on China to United States stretch have also slashed after it peaked in September, from $2,810 to $1,760 in October.


Value indications


Looking at the inbound/outbound container data by Container xChange, CAx values that are consistently above 0.70 indicate that these ports have been importing an increasing number of containers for a long period and exports are impacted due to prevailing supply chain factors.  Particularly, the ports of Long Beach and Los Angeles have consistently shown CAx values higher than 0.80 since the beginning of the year, which shows the catastrophic problem of higher inbound containers at these ports. The situation is similar at ports like Oakland, Seattle, Tacoma, and other ports in the US West Coast.


CAx at the port of Long Beach is 0.88 this week, the highest since 2019. The CAx values stood at 0.67 in 2019 and 0.68 in 2020. Higher CAx values indicate that in proportion to the inbound containers, outbound containers are much higher. The gap is at its peak at the port.


The port of Oakland, for instance, showed up general CAx values between the range of 0.36 to a maximum of 0.65 at a given week throughout 2020, which is somewhere in the range of 0.70 to 0.96 at any given week in 2021.


“The United States being an import destination of containers, has witnessed extraordinary number of vessels this year as the demand grew exponentially, especially in the North America region. This has crippled the supply chain because the ports and the supporting ecosystem have not been prepared adequately. We need measures to collectively improve the situation at these ports, which has had a domino effect on other ports and, in fact, on the global supply chain. As per our forecast, the container prices will level off at a new normal that will be at least 2x of the pre-pandemic cost by the end of next year 2022,” said Dr Johannes Schlingmeier, CEO and co-founder of Container xChange. 


Even ports in the US East Coast, like the port of Savannah, have experienced dip in the average prices of containers. A 40 ft High cube container costs $4,607 in November while it was $5,224 in September, almost a dip of 11-12%. At the port of Savannah, as of week 47, the CAx stands at 0.94, which was 0.81 in 2020 and 0.84 in 2019 during the same week. Clearly, the port is handling a very high number of inbound containers this year as compared to the past two years, the release added.

 

Source: Exim News Service: Hamburg, Nov. 24

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