Container transport has again become more expensive in January
The rates for shipping containers are now almost 90% higher that 12 months ago. The costs for container shipping by sea increased by 3.9% in January. Prices will continue to rise for the time being due to persistent congestion, high demand and the war in Ukraine, according to sea freight data platform Xeneta.
While rates are rising, the demand for container transport remains high and capacity is maximized, notes Xeneta. The Norwegian platform makes a monthly index of the worldwide tariff data. “A worrying time for shippers,” said director Patrik Berglund, especially because of the situation unfolding in Ukraine.
Logistics platform Fourkites predicts this week that the prices of container transport at sea will skyrocket under the influence of the war in Ukraine and that a container will soon cost more than 30,000 dollars.
There is uncertainty over the markets reaction on the current geopolitical tensions. The uncertainty is especially in the Black sea. Although the European shortsea market has remained at an elevated level this uncertainty exists. Because of the average rates remained relatively flat in January, ship broker Toepfer is having concerns.
Toepfer noted in their latest report, that the day rates were still high in the European shortsea market. In January 2022, the average rate for 3,200-3,800 dwt vessels stood at €6,940, while 4,800-5,600 dwt vessels were chartered for an average day rate of €9,244. But the rates edged 1.3 percent down from December 2021.
While the rates for 4,800-5,600 dwt vessels remained flat. Compared to January 2021, day rates for 3,200-3,800 dwt vessels were up 105.7 percent while day rates for 4,800-5,600 dwt vessels operating in the European shortsea market have increased 108.3 percent.
“The January income of the European shortsea fleet remains at high levels. It is yet unclear how the market reacts on the current political challenges, especially in the Black Sea. Keeping in mind that Russia and the Ukraine represent about 30 pct of the global wheat trade, significant effects on the supply/demand balance can be expected latest during harvest season,” Toepfer Transport’s report reads.
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Are you looking for a container? Dutch Containers Merchants B.V. has a large stock of containers for leasing, trading and renting. Please contact us for more information.