Avg price of 40-ft high cube Chennai container drops 5%: Container xChange

Price on October 25 was $5,400, compared with $5,700 in September, despite Covid-driven container shortage across the globe

Despite the ongoing pandemic, which has led to container shortage across the globe due to restrictions, the average price of a 40-ft high cube container at Chennai has dropped to $5,400 on October 25, from $5,700 in September.

“Though there is a drop on a month-on-month basis, the general trend observed from the beginning of the year till date in the ports of Chennai and Nhava Sheva is a gradual increase in the overall trading prices of containers in India,” Container xChange report said today.

Alongside, at Nhava Sheva prices of a 40-ft high cube container averaged at $4,880 and has been stable in the period under review.

“There is also a drop in container freights in the last few weeks since China ports are heavily infected by Covid-19 leading to drop in congestion,” said an official with an Indian shipping company on condition of anonymity.

As per maritime consultant Drewry’s World Container Index, the composite index dropped 5 per cent to reach $9,195.41 per 40-ft container as on the week ended November 4, but the year-to-date average is $7,293 per 40-foot container.

Though the composite index decreased 4.9 per cent in the week ended November 4, it remains 252 per cent higher than a year ago, indicating that the situation in container availability across the globe continues to be grim.

“Few carriers have voluntarily capped their container rates in the interest of the industry,” said a Delhi-based maritime consultant.

The pre-pandemic prices of a 20-ft dry container and 40-ft one stood at $1,000 and $2,000, respectively.

In India, Chennai has the highest container prices at $4,700 and ranks seventh globally for the most expensive 40-ft high cube container and third for 40-ft dry container, said the Container xChange report.