China’s shipping-container costs hit all-time highs, and shortage will further push up prices in coming months

Prices of shipping containers have more than doubled in the past year, and container freight rates are up 351 per cent year on year, according to Drewry maritime consultancy

But with container manufacturers rushing to meet demand – and making hefty profits – industry insiders warn of a supply glut once the pandemic is over

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Prices of dry-freight shipping containers have doubled over the past year to reach historic highs, according to a Drewry report. Photo: Reuters

Published: 5:15pm, 31 Aug 2021Updated: 10:59pm, 31 Aug 2021

Prices of shipping containers are on course to keep rising for the rest of the year amid strong global trade demand, according to analysts.

As of last week, the Drewry World Container Index, which provides weekly assessments of container freight rates, surged for the 19th consecutive week to US$9,817.72 per 40-foot container – a 351 per cent increase versus the same week in 2020.

And the rising costs will be further exacerbated in the coming weeks by the recent temporary closure of a key terminal at China’s Ningbo-Zhoushan Port, the world’s biggest port in terms of cargo tonnage, according to Container xChange, an online platform for the leasing and trading of shipping containers.

Locked down on August 11 after a port worker tested positive for the Delta variant of the coronavirus, the Ningbo-Zhoushan terminal did not resume normal operations until August 25.

Container xChange projected that Ningbo-Zhoushan situation, as well as productivity declines at ports in Vietnam due to recent outbreaks in the country, will further reduce container availability and push up prices in the South China Sea region in the near term.