New Delhi: India’s container market has shown significant fluctuations over the past few months and as the peak season nears, the shipping container prices surged by 50.4 per cent from April to August 2024, reaching $2,340 in Chennai, a report showed on Friday.
The August analysis for India reveals a shifting sentiment in container price expectations, according to the latest ‘Container Price Sentiment Index’ by industry technology platform Container xChange.
Companies operating in the Indian container logistics space should remain agile and prepared for both opportunities and challenges as the market navigates through this period of uncertainty, the report suggested.
In June, optimism was high, with 72.3 per cent of respondents expecting an increase in container prices, and only a small portion, 9.6 per cent, anticipating a decrease.
By August, sentiment began to waver as only 63.4 per cent still anticipated price increases, while a growing 22.4 per cent believed in a potential decline.
“The market seems to be entering a rebalancing phase where companies need to be cautious and prepared for both potential price hikes and downward adjustments,” said Christian Roeloffs, cofounder and CEO of Container xChange.
While the early months of the year exhibited strong optimism regarding price increases, the recent data suggests a more cautious outlook from supply chain professionals as market conditions change.
Chennai experienced the steepest increase in average container prices (50 per cent), followed by Nhava Sheva (35 per cent) and Mundra (26 per cent) since April.
Average prices for 40 feet high cube cargo-worthy containers ranged between $1,200-$1,500 across major Indian ports. These prices have surged to an average of $2,000-$2600 in August, reflecting sustained demand and capacity constraints.
The growth in containerised shipments from India have shown remarkable resilience compared to global trends.
“The rush to restock inventory ahead of expected demand recovery has primarily fuelled this surge in prices. As demand stabilises, there’s a good chance that these container prices may not hold in the long term if demand remains subdued,” said Roeloffs.
–IANS