Freight News, Sea

Box prices in free-fall, says Container xChange

[ July 19, 2022   //   ]

Second-hand container prices are plummeting due to oversupply, said box trading and leasing firm Container xChange in its latest analysis. It said that congestion at ports in early 2020 led to the panic ordering of record numbers of new boxes and, with markets reopening and demand softening, there is now an oversupply. Average container prices and leasing rates have been declining globally since September-October 2021, it says.

The report adds that freight rates have come down by an average of 20% since the beginning of 2022 and these will continue to slide gradually, but there will not be a massive decrease because underlying disruptions in the supply chain remain.

Container xChange adds that the oversupply will lead a requirement for more depot space which is already scarce.

The report concludes: “This situation will lead to tighter depot space, carriers will rush to get rid of their older equipment, second-hand container prices will continue to slide gradually only to reach a new normal level and the new market will dry up.”