Skyrocketing ocean- bound container rates set to ease in February: insiders

Ocean- bound container rates have eased for two consecutive weeks after the Chinese government stepped up efforts to stabilize the market, and insiders from the logistics and trading industries expect a decline in the next week.

The Shanghai ( Export) Containerized Freight Index closed at 2,861.69 on Friday, easing 0.3 percent from the previous week, per a report released on Saturday.

Although the reading declined, it was almost triple that of the year- earlier period, indicating the imbalance of China’s strong export demand and disruptions to the movement of containers due to the COVID- 19 outbreak.

The Ministry of Commerce has pledged to increase supply of containers and promote operations of international logistics.

On Friday, more than 6,100 empty containers reportedly arrived in Ningbo, East China’s Zhejiang Province, a development that observers hope will temporarily ease the demand for containers, which has been pushed up by increasing export orders as the country’s economy rebounds.

But it may take time for these containers to ease pressure on the market, an employee at a Shanghai- based international logistics enterprise told the Global Times on Sunday.

“International sea shipping rates remain high. There should be more containers available next week and rates are expected to drop slightly as a result. But demand is still surging, and bookings can’t be made until the end of February,” said the person, who declined to be identified.

Wilson, who works for a Shanghai- based import and export agency, said that the additional containers had not shifted conditions or rates in the industry.

The average utilization rate of shipping space from Shanghai to Europe and US was close to full load last week.