Box lull witnesses change in global container flows

The xChange Container Availability Index has reflected that there is a lull in the box volumes leading to changes in container flow as well as a fall in congestion. It is witnessed that the export and import flow at Los Angeles and Long Beach, America has dipped 10% compared to the previous year. The number of containerships in US coastal waters has dropped to less than half of the count that was seen last year.

At Ningbo, in the meantime, China’s second-largest box port, after two years of handling more exports than empty returns and imports, the share of imported containers traversed into and has continued the majority since late last year as demand for exports reduced. According to the data from Dalian Maritime University, there were empty containers piling up at ports in China for more than 5 meters which is twice the number when compared to the pre-covid times.

Peter Sand, chief analyst at freight rate platform Xeneta stated that global shippers should navigate in a tricky environment as carriers still trust blank sailings even when the services should be closed. The year 2023 is seen as the year to manage excessive capacity by the carriers and there is an expectation of 400,000 teu to leave the fleet permanently.

Drewry’s World Container Index, a spot index published every Thursday, was down another $16 today to $1,790 per feu, 82% down from all-time highs recorded in September 2021.