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China faces supply-demand imbalance in container trade woes

China faces supply-demand imbalance in container trade woes

Posted on March 22, 2024   |  

The market observes a notable difference between the price expectations of buyers and sellers amid a deficit in demand.

China's exports to Russia show a 12.5% year-on-year increase in the first two months of 2024, with imports also rising by 6.7%.

Despite an excess of units held in Russia, the region's capacity remains saturated, leading to cautious behavior from both buyers and sellers.

Although depot pressure is gradually mounting, it's not yet strong enough to induce traders and sellers to adjust their price expectations.

Buyers anticipate price reductions in the coming weeks, while sellers are holding off on inventory in anticipation of stable prices, especially amidst tight capacity.

The Container Price Sentiment Index reflects buyer sentiment for further price declines, declining from an all-time high to 22 points by March 14, 2024.

In November 2023, the average price for 40-foot cargo-worthy containers in China was approximately $1,700, but following the Houthi attacks, prices have remained elevated at $2,100 as of March 2024.



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