Container Prices Decline as Overcapacity and Weak Consumer Demand Plague Shipping Industry

SalesMoney Matters
Written By Jennifer Joslyn

Container prices have experienced a significant drop, with the average price of 20ft dry containers in New York falling by 82% from its peak in June 2021. The industry faces an overcapacity of containers and vessels, which is expected to worsen as new ships are added to global fleets. Slower sailing speeds and reduced consumer demand contribute to the challenges, leading shipping lines to cut costs and capacity. While there is hope for a return of container demand in the long term, short-term prospects remain uncertain.

Read more from Reuters Events ▶

Featured
Chinese Hacking Targets European Cargo Shipping
Chinese Hacking Targets European Cargo Shipping

A top cybersecurity firm, ESET, has uncovered Chinese hacking attempts in the European cargo shipping industry, marking the latest instance of China-aligned groups infiltrating Western economic infrastructure.

Peloton Files Federal Complaint Against Flexport Over Unreasonable Charges
Peloton Files Federal Complaint Against Flexport Over Unreasonable Charges

Peloton has lodged a complaint against digital freight forwarder Flexport with the Federal Maritime Commission, alleging that Flexport's practices resulted in millions of dollars in unreasonable demurrage and detention charges.

Baltimore Files Legal Claims Against Cargo Ship Owners for Bridge Collapse
Baltimore Files Legal Claims Against Cargo Ship Owners for Bridge Collapse

The City of Baltimore is holding the owner and manager of the cargo ship responsible for the tragic collapse of the Francis Scott Key Bridge last month.

March Performance Reflects Continued Challenges for Freight Industry
March Performance Reflects Continued Challenges for Freight Industry

In March, the freight sector didn't quite hit the usual spring upswing, with the Cass Freight Index reporting that both shipments and expenditures mostly mirrored February's figures, falling short of typical seasonal patterns.

Panama Canal Is On the Road to Recovery After Dry Season
Panama Canal Is On the Road to Recovery After Dry Season

After a challenging six months marked by the driest October in 73 years, the Panama Canal is finally seeing a turnaround.

The Big Shift in U.S. Imports: More Containers, Higher Prices
The Big Shift in U.S. Imports: More Containers, Higher Prices

Here’s a quick rundown on the latest U.S. import scene: Inflation’s not the only thing on the rise – we’re seeing a significant increase in imports from China, especially after their factories reopened post-Lunar New Year.

Progress in Baltimore Bridge Collapse Cleanup
Progress in Baltimore Bridge Collapse Cleanup

The Unified Command, a coalition involving the U.S. Coast Guard, U.S. Army Corps of Engineers, and other key agencies, has started a crucial phase in the aftermath of the Baltimore bridge collapse.

Baltimore Bridge Collapse Has Quick Updates
Baltimore Bridge Collapse Has Quick Updates

In Baltimore, officials have quickly established a temporary shipping route around the Francis Scott Key Bridge collapse site to resume port operations.

Biden Commits to Federal Funding for Baltimore Bridge Reconstruction Amid Criticism
Biden Commits to Federal Funding for Baltimore Bridge Reconstruction Amid Criticism

After the recent collapse of the Francis Scott Key Bridge in Baltimore due to a container ship collision, resulting in six deaths, President Biden announced the federal government's commitment to fully fund the bridge's reconstruction.

Bridge Collapse at Port of Baltimore Upends Local Logistics
Bridge Collapse at Port of Baltimore Upends Local Logistics

The Francis Scott Key Bridge near Baltimore collapsed early Tuesday morning after a huge container ship hit one of its pillars.

Baltimore Harbor Bridge Collapse Involving Cargo Ship Dali Claims Lives
Baltimore Harbor Bridge Collapse Involving Cargo Ship Dali Claims Lives

Early Tuesday morning, a major incident occurred at Baltimore Harbor.

The Panama Canal's Sustainability Struggle
The Panama Canal's Sustainability Struggle

The Panama Canal faced a shipping crisis due to a surplus of capacity, prompting restrictions that affected global trade.

Navigating Turbulence Among Challenges and Strategies in Container Shipping
Navigating Turbulence Among Challenges and Strategies in Container Shipping

The container shipping industry is grappling with a surplus of capacity, leading to a drop in customer rates that Maersk CEO Vincent Clerc described as unsustainable during the company's annual shareholder meeting.

EU Approves CMA CGM's Acquisition of Bolloré Logistics with Conditions to Safeguard Fair Competition
EU Approves CMA CGM's Acquisition of Bolloré Logistics with Conditions to Safeguard Fair Competition

The European Commission gave the green light to CMA CGM's acquisition of Bolloré Logistics SE, with conditions, following an investigation into potential competition issues.

Maersk Expands End-to-End Supply Chain Services
Maersk Expands End-to-End Supply Chain Services

Maersk is expanding its services to cover the entire supply chain, including air cargo operations.

Ammonia as a Marine Fuel is a Double-Edged Sword for Decarbonization
Ammonia as a Marine Fuel is a Double-Edged Sword for Decarbonization

Ammonia has emerged as a potential marine fuel in the quest for decarbonization, but a study from Chalmers University of Technology in Sweden reveals that this alternative may create new environmental challenges.

Climate-Induced Drought Disrupts Panama Canal, Sending Ripples Through Global Trade
Climate-Induced Drought Disrupts Panama Canal, Sending Ripples Through Global Trade

Climate change is causing a major headache for global trade as an unprecedented drought in the Panama Canal disrupts container traffic.

FedEx Unveils Innovative Data-Driven Commerce Platform
FedEx Unveils Innovative Data-Driven Commerce Platform

FedEx is set to launch a new "data-driven commerce platform" called fdx in the fall, offering comprehensive e-commerce solutions for online merchants.

Maersk Adapts Shipping Routes as Panama Canal Faces Water Shortages
Maersk Adapts Shipping Routes as Panama Canal Faces Water Shortages

Shipping giant Maersk has informed clients that vessels carrying freight from Oceania (Australia and New Zealand) will no longer transit the Panama Canal due to ongoing low water levels caused by a severe drought.

Dole Expands Weekly Vessel Service to Boost Tropical Fruit Supply
Dole Expands Weekly Vessel Service to Boost Tropical Fruit Supply

Dole Food Company has introduced a new weekly vessel service, effective since December 31, 2023, to the Northeast United States.

U.S. Helicopters Repel Houthi Attack on Maersk Vessel in Red Sea
U.S. Helicopters Repel Houthi Attack on Maersk Vessel in Red Sea

In a recent incident in the Red Sea, U.S. helicopters successfully defended a Maersk container vessel from an attack by Iran-backed Houthi militants.

Fire Aboard Cargo Ship Carrying Lithium-Ion Batteries Successfully Extinguished off Dutch Harbor, Alaska
Fire Aboard Cargo Ship Carrying Lithium-Ion Batteries Successfully Extinguished off Dutch Harbor, Alaska

After a few intense days, the fire that blazed in the cargo hold of the Genius Star XI - a huge cargo ship hauling lithium-ion batteries from Vietnam to sunny San Diego - is finally out.

Global Shipping Firms Impose Surcharges Amid Red Sea Rerouting
Global Shipping Firms Impose Surcharges Amid Red Sea Rerouting

Maersk and CMA CGM, two major global shipping companies, are implementing additional charges due to their decision to reroute ships away from the Red Sea following recent attacks on vessels in the region.

International Coalition Launches 'Operation Prosperity Guardian' to Safeguard Red Sea Trade Routes
International Coalition Launches 'Operation Prosperity Guardian' to Safeguard Red Sea Trade Routes

An international coalition of countries, including the United States, the United Kingdom, and others, has launched "Operation Prosperity Guardian" to counter Houthi rebels targeting commercial ships in the Red Sea.

BP Joins Major Companies in Suspending Red Sea Shipments Amid Houthi Rebel Attacks
BP Joins Major Companies in Suspending Red Sea Shipments Amid Houthi Rebel Attacks

BP has decided to halt all shipments through the Red Sea due to recent attacks on trade vessels by Houthi rebels in Yemen.

US Suggests Somali Pirates Behind Israel-Linked Cargo Ship Attack Amid Houthi Concerns
US Suggests Somali Pirates Behind Israel-Linked Cargo Ship Attack Amid Houthi Concerns

The United States suggests that the attackers who attempted to seize an Israel-linked cargo ship were likely Somali pirates rather than Houthi fighters from Yemen.

Philippine Authorities Accuse Chinese Ships of Aggressive Actions in South China Sea
Philippine Authorities Accuse Chinese Ships of Aggressive Actions in South China Sea

Manila accused Chinese ships of aggressive actions, including firing water cannons and making "dangerous maneuvers," against Philippine vessels resupplying a remote military outpost in the disputed South China Sea.

Orcas' Mysterious 'Attacks' on Boats Puzzle Scientists in Southern Europe and Northern Africa Waters
Orcas' Mysterious 'Attacks' on Boats Puzzle Scientists in Southern Europe and Northern Africa Waters

Orcas have been involved in a series of "attacks" on boats in the waters between southern Europe and northern Africa since 2020, with around 500 encounters reported.

Storm Ciarán Ravages Western Europe, Leaving Millions Without Power and Causing Havoc
Storm Ciarán Ravages Western Europe, Leaving Millions Without Power and Causing Havoc

Storm Ciarán swept through Western Europe, bringing record-breaking winds and causing widespread power outages, transportation disruptions, and significant damage.

Florida Governor DeSantis Announces Military Aid to Israel Amidst 2024 Presidential Race
Florida Governor DeSantis Announces Military Aid to Israel Amidst 2024 Presidential Race

Florida Governor Ron DeSantis has announced plans to send drones, weapons, and ammunition to Israel in response to the situation in Gaza.

Jennifer Joslyn
Previous

Japan's Largest Port Hit by Ransomware Attack, Causing Cargo Delays
Next

Exploring the Integration of Battery Systems in Locomotives for Grid Support