India remains a hotbed for changing maritime dynamics amid global supply chain disruptions: Container xChange
New Delhi, Delhi, India:
- Container prices set to rise in coming months with Mundra being India’s most expensive port for standard containers
- ‘India Advantage’ – a promising opportunity for India to become more prominent in global value chains
While global average container prices increased by up to 15% in the month of May, average container prices in some of India’s major ports declined, which is similar to the trend seen in China and many other country of the world. The was a continuous month-on-month decline in HC 40ft container prices in Chennai from $4,044 in April to $4,015 in May as prices in the ports of Nava Sheva and Mundra increased slightly. The information is part of the monthly container logistics report “Where are all the containers” published by Container xChange, a technology infrastructure provider for container logistics players.
“We expect an increase in containers on the transpacific, leading to increased vessel utilization on this route. We could see an increase in spot rates, especially with the next peak season (October – December),” said Christian Roeloffs, co-founder and CEO, Container xChange.
Container Trade Perspectives
For 20DC, prices rose by a slight margin of $12 in the port of Nava Sheva while they fell in the ports of Mundra and Chennai.
In the coming weeks, prices for the 20DCs in major Indian ports are expected to hold between around $2100 to $2600. For the 40HC, in the near future, prices should be around $3600 to $4400.
According to Container xChange business information, as of May 25, for 40HC, locations in China and India like Chennai ($4,897), Guangzhou ($4,711), Nhava Sheva ($3,516), Mundra ($3,430 ) and Ningbo ($3,427) are the most expensive. . The trend remains the same as at the beginning of June. Among Indian ports, Mundra has the most expensive 20DC and 40HC containers. Overall, for 20 DC, Mundra ($2,489) ranks first as the most expensive port in the world, followed by Chennai ($2,435) and Milan ($2,348).
From a fragmented market, the Indian shipping industry is encouragingly moving towards a truly global and integrated market for containers. Amid economic and political tensions in Sri Lanka, the Indian subcontinent’s dependence on the port of Colombo is gradually becoming known.
“The drastic changes in maritime dynamics may be linked to the country’s efforts to establish a transshipment terminal on the east coast. Due to the Colombo crisis, more transshipment containers have been directed to India’s east coast portssaid Christian Roeloffs, founder and CEO of Container xChange.
Another key finding is the increase in Container Availability Index (CAx) values from week 21 (last week of May). Nhava Sheva West Port in Navi Mumbai saw CAx rise from 0.73 in week 21 to 0.76 in week 22. In the coming weeks, CAx is expected to fluctuate between these two figures. CAx values > 0.5 mean more shipping containers are entering Indian ports and there is less demand for export boxes.
However, on the east coast of India, the port of Chennai saw a slight drop in CAx in week 22, from 0.81 in week 21 to 0.79. The score should rise to 0.8 in week 23 and stabilize there over the next few weeks.
Commenting on the state of the Indian container logistics market, Christian Roeloffs, founder and CEOof xChange Container said, “South Indian ports have gradually started to increase their capacity to handle increased cargo traffic due to the lingering crisis in Sri Lanka. As the cash-strapped country struggles to emerge from the macroeconomic dysfunction, India has the possibility of obtaining permanent diversions of navigation to its coasts.
“However, there is a lot of work to be done for Indian ports to attract ships to Colombo, starting with increasing their draft to match that of Colombo and developing strategically placed ports on the sea route. Starting from scratch may not be the key here, but rather expanding the ecosystem already present will reap more long-term benefits and give India its place in the global value chain.
For more information on container prices, availability and one-way rates, please find the full report here – https://www.container-xchange.com/reports/may-monthly-container-logistics-update/
The Container Availability Index monitors and forecasts the global supply of container equipment by tracking millions of monthly container movements. For more information and weekly email updates, visit: https://container-xchange.com/features/cax/
In Container xChange’s Container Availability Index (CAx), an index below 0.5 means more containers are leaving a port than are entering. Above 0.5 means more containers are entering the port.
The CAx includes:
- Movements in and out of containers (or import and export of containers)
- An estimate of containers made in China
- 20ft and 40ft containers
The CAx does not include:
- Empty repositioning of containers by carriers
- Containers sold locally at some locations
- Exact number of containers made
About Container xChange
Container xChange is a technology company that provides an efficient container trading and leasing platform, payment infrastructure and operating systems to container logistics companies around the world. Covering the entire container shipping transaction process, starting with finding new partners, tracking containers and managing payments, xChange makes using third-party equipment as easy as booking a hotel. We’re on a mission to simplify global trade logistics.
As one of the top ten logistics technology companies in the world, xChange is fundamentally transforming thousands of processes involved in moving containers globally. xChange is trusted by more than 1000 container logistics companies such as Kuehne+Nagel, Seaco or Sarjak who use the neutral online platform daily to eliminate friction and create economic opportunities.
xChange Container was founded by Christian Roeloffs and Dr. Johannes Schlingmeier in 2015 as a side project (an Excel sheet) part of the Boston Consulting Group (BCG) in 2015. In 2017 the company was transformed into an independent, neutral business entity . Based in Hamburg, Germany, xChange now has over 240 employees from over 65 countries, facilitating container operations for over 1,000 shipping lines.
A funded company, Container xChange acquired TankContainerFinder.com in 2021 to further strengthen its portfolio of product offerings for tank container trading and leasing capabilities. https://www.container-xchange.com/