Global Container Logistics Report: October 2024

China’s manufacturing sector continues to struggle with contraction, with factory activity shrinking for the fifth consecutive month in September. The official Purchasing Managers’ Index (PMI) rose slightly to 49.8, up from 49.1 in August, but still signaling a continued decline. Despite this marginal uptick, China’s broader economic challenges persist. Weak demand continues to weigh heavily on both manufacturing and consumer sectors.

Spot container rates from Asia to the US East Coast dropped by over 40% in September compared to August, driven by cargo diversions ahead of the longshore strike on the East and Gulf coasts.

The average container leasing rate for a 20ft container from Shanghai to New York is $410 in October, while the rate from Shanghai to Los Angeles is $510.

India’s exporters, who have been struggling with rising shipping costs, have received some government-backed relief. At Concor’s largest inland terminal in Nhava Shava, exporters will now benefit from an extended 90-day ‘free time’ for storing empty containers. Beyond this period, a 50% discount on storage fees will apply, along with similar reductions in handling charges for laden export containers.

The Shipping Corporation of India (SCI), the national shipping line, has launched a new initiative to expand its container shipping capacity on major trade routes. According to the government, SCI will immediately add 9,000 TEUs of capacity and acquire five additional containerships to further enhance cargo handling capabilities.

The average price of a cargo-worthy 40ft container in India is $1,826 as of October 2024, reflecting a slight increase from $1,726 in September.

Find out more in our free report:

Starting next year, shipping carriers on Asia-North Europe routes will be able to significantly reduce their obligations under the EU Emissions Trading System (ETS). Carriers can reduce their ETS obligations by making the first port of call outside the EU. UK ports such as Southampton, Liverpool, and Felixstowe are positioned to benefit as carriers seek to minimize ETS costs by adjusting their routes before entering EU waters. MSC, which operates a large network comparable to the major shipping alliances like Premier, Gemini, and Ocean, will be able to lower its ETS liability by 47%.

The average price of a cargo-worthy 20ft container at European ports is $980 in October 2024, while the average price at ports in the UK is $770.

Find out more in our free report:

The recent strike at East and Gulf Coast ports, led by the International Longshoremen’s Association (ILA) representing 45,000 dockworkers, came to an end on October 3 following a temporary wage agreement with the United States Maritime Alliance (USMA), which represents port operators.

The three-day strike, which began on October 1, disrupted several of the busiest ports in the country, spanning from Maine to Texas. The dispute centered on wage increases, with the union demanding higher pay than what the port operators had initially offered.

At the height of the strike, experts estimated that the US economy could suffer losses ranging between $4.5 billion to $7.5 billion per week, translating to a 0.1% reduction in the annualized GDP for each week of the disruption. While the strike’s brief duration helped mitigate its long-term impact, signs of strain in the US supply chain were already visible. Thousands of containers were rerouted to alternate ports, billions of dollars in goods remained anchored offshore, and shipping costs began to rise.

As of October 2024, the average price of a cargo-worthy 40ft container on the US West Coast is $1,630. The prices are lower on the US East coast at $1,030 in New York.

Find out more in our free report:

Where does the data for our monthly reports come from?

For our monthly ‘Where are all the containers’ reports, we leverage the data from the transactions taking place on our xChange marketplace + third-party analyses and industry news to bring you: