According to the data released by the Shanghai Shipping Exchange on 11 February, the recovery of Chinese exports after the Chinese New Year holiday has not been satisfactory.
This has had a knock-on effect on container freight levels, and the balance between supply and demand is not ideal.
Drewry's World Container Index stated on 16 February that average shipping rate for 40-foot containers has plunged 81% from a peak of US$10,377 in September 2021, to US$1,955 now. The consultancy had recently estimated that the oversupply of containers would reach 6 million TEUs, due to over-ordering during the good times reports container-news.com
According to insiders in the shipping industry, a large number of boxship newbuildings will be delivered this year, due to record orders when freight levels hit all-time highs in 2021 and 2022. However, the liner party is all but over, and collapsed cargo volumes have caused excess shipping capacity.
Linerlytica analyst Tan Hua Joo told Container News that the pile-up of empty containers in ports is an illustration of the sluggish market.