Container Market Update
Container Market Update
A return to higher container shipping costs, but for how long?
Since our last report in May 2023, costs for shipping containers stabilised for almost a whole 12 months comfortably falling back to sub $2,000/FEU pre-pandemic levels.
At the time of writing rates are at $5,117/FEU and are not showing signs of slowing down. The reason behind this is predominantly caused by ships diverting from the Red Sea (Suez Canal) to the Cape of Good Hope when sailing from China to Europe, because of the activity in the Red Sea by the Houthi’s.
There will be significant pressure from Western and Middle Eastern countries to resolve the situation as quickly as possible as the potential economic fallout to all, could be significant, just as most economies are getting inflation under control.
In the container market update we provide regular updates on the shipping markets and supply chain issues to help assess company valuations and cash flow.
For more information, please get in touch with Anthony Cunningham.