Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
The nearly 40 per cent
drop in container prices has not brought any cheer to the shipping and
exporters fraternity. A majority of them
say the fall in rates comes at a time of subdued demand across markets.
Industry sources
pointed out that there was a decline in average container prices in the country
at $2,088 from $3,288 in March.The rates were skyrocketing during the pandemic,
coupled with a shortage of containers, thereby hitting the bottom lines of
several companies. The situation improved last year with the availability of
adequate containers.
Binu KS, President of
Kerala Steamer Agents Association, said the recent dip in freight levels can be
attributed to many factors.
The disrupted supply
chains and vessel schedules were a main reason for the imbalance in the box
supply situation during the pandemic, amid a drastic dip in demand from the US
and European markets. The Ukraine war also adversely hit demand across Asia to
Europe.
“Now we are experiencing a situation where we
have enough space in vessels and excess supply of containers, which compelled
shipping lines to start a price war, resulting in drop of freights. This may continue for another 3-6 months,”
he added.
According to Prakash
Iyer, chairman, Cochin Port Users Forum, the
recessionary trends in the US and European markets have forced shipping lines
offer lower rates to help fill cargo.
However, the situation is not conducive to get more export orders. This downward trend will continue for another few months, and cargo volume is expected to bounce back by the end of the year.
