Average container trading prices in China decreased for the second consecutive month in September, remaining 25 per cent higher than last year’s average.

Typhoon delays have led to extended berthing times of 36-60 hours in Shanghai and 24-48 hours in Ningbo, compounding the strain on key shipping routes. China experienced its worst typhoon in 75 years recently, making landfall on the east coast. 

Several ports in Ningbo and Shanghai have announced the suspension of container operations.

Ongoing US East Coast labour strikes have led to an acceleration in shipment orders as businesses aim to sidestep potential delays, says the report by the Hamburg-based online global container trading and leasing marketplace. 

“In light of the recent robust US economic growth, particularly in consumer spending (expected to rise 2.4 per cent in 2024), businesses have been pulling forward shipments to mitigate potential delays. This consumer demand, coupled with a projected 3.8 per cent increase in imports in 2024, represents the significance of timely shipping from China,” said Christian Roeloffs, co-founder and chief executive officer of Container xChange, in a company release.

Golden Week traditionally causes a temporary slowdown in logistics activities across China, with a noticeable dip lasting between seven and ten days.

All these events are expected to make the China-to-US shipping route volatile and uncertain over the next 20 days.

Despite these uncertainties, there is no significant congestion or market tightening within China itself. Several customers have reported a drop in container prices and lower carrier-owned container rates, suggesting a softening demand for exports from China.

Fibre2Fashion News Desk (DS)