Container prices surge as container availability becomes a concern for Indian exporters

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(Image Courtesy: Container xChange)

Container xChange, the global platform for container logistics has launched data trends and analysis on the impact of global supply chain disruption on the Indian container logistics market. Two key elements – continued surge in container prices and growing imbalance of container availability in India is negatively impacting and leading to supply chain slowdown – a massive problem which will continue to grow up until 2022 and beyond.

The data indicates that there is further rise in the historically high prices of 20 ft. and 40 ft. Dry containers at Indian ports (NHAVA SHEVA, Mundra and Chennai).

Compared to May, in September prices for 20ft. dry containers have risen by 18% and similarly, the prices for 40ft. containers have risen by 37% according to the platform data. The average price of a 20 ft. Dry container in India in the month of September this year is $2462 (181320.15 INR), a rise from $2078 from May 2021. The pre-pandemic price of the same specification container was at approximately $1000 for 20DC and $2000 for 40DC at this time of the year. Similarly, the average price of a 40ft. dry high cube container in India is $4193.75 (308859.20 INR), a 37% increase in the prices in May which was $3041.84 (224023.91 INR).

(Graph Courtesy: xChange)

The Container Availability Index (CAx) by Container xChange, a tool used to monitor inbound and outbound volumes of containers for every port globally, indicates that the inbound containers are at an all-time high since the year 2019 by about 4X at the Chennai port (and similarly other ports in India) indicating an all-time high in the imbalance of inbound and outbound containers at the port.

Christian Roeloffs, CEO and cofounder, Container xChange said, “The growing imbalance of inbound and outbound containers being experienced in the Container Availability Index (CAx) at major Indian ports (including Nhava Sheva, Mundra and Chennai) is an indication of two key market conditions – 1. exports are being impacted immensely (inspite of a record month in July for India’s exports) and 2. imbalance of inbound containers over outbound containers is getting worse by the week.”

(Graph Courtesy: xChange)

“The CAx values at major Indian ports are rising, because exporters are facing hurdles to export their goods from India (inspite of a record high in July this year). The rising container freight and spot costs over the past months, containers stuck in other locations which delays their cargo and vessel capacity issues are some pain points. Other major cause of delay in container loading is OfCourse the continued impact of COVID-19 outbreak which led to shortage of human resource at the ports. This has continued to impact the system since the outbreak in India in the late march of the year 2020.” commented Dr. Johannes Schlingmeier, Co-founder and CEO, Container xChange

The costs have been skyrocketing since the beginning of the year 2021 and continue to soar higher every week. Therefore, the number of containers that could have taken off from India to its destination has slowed down, mirroring a trend being observed in the global supply chain slow down.

Week 36, Container Availability Index data India (main ports):

“Container xChange is revolutionizing the global container logistics industry by providing a neutral platform for buying, selling and leasing containers and digitizing the process to make it as simple and efficient as the container itself,” the company stated.

Sea News Feature, September 17

Baibhav Mishra
Author: Baibhav Mishra

Associate Editor, Sea News