Container prices in Asia take a hit in March 2023 on low demand, higher inventory – report

Container prices fell in March 2023 due to sluggish consumer demand and excess inventory in Asia, online container logistics company Container xChange said in a market forecaster report. Singapore and China saw container prices plunge by 55 percent and 47 percent year-on-year (YoY) to $1,951 and $2,284, respectively, in March 2023. Ports in Vietnam, India, Thailand, Malaysia and Indonesia reported 51 percent, 50 percent, 46 percent, 42 percent and 40 percent declined YoY in March 2023. “In major ports across Asia, such as Ningbo, Shanghai, and Singapore, the cost of leasing and purchasing containers dropped sharply over the past year. This means that container companies are struggling to make money and that the current situation may persist for a while,” the report said. Christain Roeloffs, CEO & Co-Founder, Container xChange, said that the uncertainty around inventory restocking in the first half of 2023 has been exacerbated by the highly uncertain consumer demand side of the picture, with the potential impact of a possible recession on consumer spending in the US and European Union region. “This, in turn, signals a grim outlook for the revival of container prices any time soon,” he added. New Strategy As part of a China plus one strategy, businesses are currently assessing and launching projects to test the waters by entering new countries to meet their supply chain demands. Roeloffs noted that the strong economic partnership between Southeast Asia and China could provide a much-needed stimulus to the world economy. “This year, shipping and port firms are considering proposals to establish additional tailor-made sea transportation routes, with Southeast Asia being a key area of interest. The cooperation between these regions could give a boost to the overall ramifications of the global supply chain.” Pickup charges from China to Southeast Asia saw a major slump of 84 percent from $559 in January 2023 to $91 in March 2023. "This is an evident indicator of increased intra-Asia trade," the company stated. (Writing by P Deol; Editing by Anoop Menon) (anoop.menon@lseg.com)

Container prices in Asia take a hit in March 2023 on low demand, higher inventory – report

DISCOVER MORE

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

Saudi: KAUST partnerships in China to accelerate knowledge, technology exchange

China spent $240bln bailing out 'Belt & Road' countries - study

China Energy plans 1000 MW floating solar plant in Zimbabwe

Saudi Aramco to acquire 10% stake in China’s Rongsheng Petrochemical

Sinopec says will actively explore opportunities in Saudi Arabia

Maersk, Shanghai International Port to jointly explore green methanol bunkering

Aramco JV to start work of $10bln petchem complex in China in Q2 2023

Egypt's central bank likely to hike interest rates by 3% - HSBC

Saudi National Bank's chairman resigns; Al Ghamdi takes over

BP and UAE's ADNOC bid for stake in NewMed Energy

UAE exchange firm Al Ansari raises $210mln in IPO

UAE banking sector to remain stable in 2023 – KPMG

AD Ports Group launches new Ro-Ro Shipping Service to improve commercial connectivity with Kuwait

Bangladesh to allow Bhutan access to its ports for trade

HHLA calls for final approval of China's Cosco investment in Hamburg port

Saudi's King Abdulaziz Port sets new container handling record

Aramco, DHL Supply Chain to launch procurement and logistics hub in Saudi Arabia

LATEST VIDEO

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

ZAWYA COVERAGE

Saudi Industrial Investment Group to acquire stake in Danish firm Unibio for $70mln

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

Global energy transition needs $35trln investment by 2030 – IRENA

Saudi’s fintech sector starts to rival UAE, Egypt as number of firms nearly doubles

UAE rains: Road closure announced due to falling rocks

Hungary cenbank holds base rate at 13% as expected

Lyft shares jump as Wall Street welcomes CEO change

China's industrial recovery and warm weather drive Q1 smog surge - ministry

Sri Lankan shares end lower as consumer staples and financials weigh

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE