New Delhi, Aug 8 (IANS): Geopolitical headwinds resulted in a 27 per cent hike in container logistics prices in the Indian shipping market in July but the country displayed resilience amid the high volatility in the Asian markets, a new report showed on Thursday.
Majority of supply chain professionals are expecting further container price hikes in the coming weeks in August, said ‘Container xChange August Forecaster Survey’ results.
According to Christian Roeloffs, cofounder and CEO of Container xChange, a Germany-based online global marketplace for container trading and leasing, the Asian container logistics market is experiencing market volatility since the onset of Red Sea diversions caused by Houthi attacks in November last year.
“Average container prices in India have been less volatile than other Asian countries compared to 2023 and since the beginning of this year 2024,” said Roeloffs.
India witnessed container prices rising since the beginning of this year on a month-on-month basis and these prices continued to rise in July to reach $2,028 from $1,941 in June and $1,603 in May 2024.
The average container prices in Chennai show a consistent upward trend from December 2023 ($1,502.5) to July 2024 ($2,072.5), said the report.
The container prices generally show higher prices in the later months, especially from April 2024 onward, due to global geopolitical headwinds impacting the country’s container logistics market and causing increased volatility.
“The container logistics professionals should consider these trends for future strategic planning, ensuring adequate supply to meet the rising demand and mitigating potential disruptions.” said Roeloffs.
In Asia, Chinese ports are experiencing volatility with significant peaks and troughs, potentially due to fluctuating trade volumes and international demand variations, the report mentioned.
Ports in Malaysia, Hong Kong and Singapore show an increasing trend with a notable rise in June and July, indicating growing trade activities or increased demand.