{"id":196,"date":"2023-05-31T08:18:10","date_gmt":"2023-05-31T08:18:10","guid":{"rendered":"https:\/\/china-docshipper.uiart.io\/en\/2024\/12\/26\/asia-container-trade-challenges-facing-the-chinese-container-trade-business\/"},"modified":"2025-07-02T09:50:35","modified_gmt":"2025-07-02T09:50:35","slug":"asia-container-trade-challenge","status":"publish","type":"post","link":"https:\/\/china.docshipper.com\/en\/logistics\/asia-container-trade-challenge\/","title":{"rendered":"Asia Container Trade: challenges facing the Chinese container trade business"},"content":{"rendered":"\t\t
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The <\/span>container trade<\/b><\/span> industry is a vital aspect of<\/span> international shipping<\/b><\/span>, facilitating overall movement of goods across the globe. With China being the global manufacturing hub, the container trade<\/span> market has become a significant factor contributing to international logistics. However, the<\/span> Chinese container trade market<\/b><\/span> is currently facing challenges due to a slow market pickup, affecting the industry’s growth and overall performance in the region. Therefore, by reading our article,\u00a0 you will take a closer look at the factors contributing to this struggle and the knowledge to overcome this challenge.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The gloomy situation of global international shipping\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The prolonged perspective of shipping industry\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The global shipping industry has been facing such a complex scenario in recent years. After a long time surge in price, container rates<\/a> are experiencing a substantial decrease as contract rates are moving closer to spot rates.\u00a0<\/span><\/p>

\"Port<\/p>

An uncertain future still awaits the <\/span>shipping industry<\/b><\/span>, as there is low consumer demand in North Europe and the slow recovery of the Chinese <\/span>container trade<\/b><\/span> market, which suggest continued difficulties for the industry. Container prices and rates in mega hub ports across Asia, such as Ningbo, Shanghai, and Singapore have <\/span>considerably dropped<\/span><\/a> in the last year, indicating this situation may persist for some time.<\/span><\/p>

The Chinese exports to different regions are in contrast: decline to the EU and US in 2022, while the <\/span>container pick up<\/b><\/span> to Russia is surging. The China shipping industry has recovered and recorded a trade surplus that keeps increasing. However, the trend in export growth slowed down as the year progressed. Unfortunately, the sluggish export growth will be a continuation for outbound containers trade.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Specialist\u2019s viewpoint toward current container trade\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Many specialists have viewed the <\/span>shipping trend<\/b><\/span> as a threat to global academics. Mr. Christian Roeloffs, CEO & Co-Founder, of <\/span>Container<\/b><\/a> xChange believed that this container\u2019s price decrease trend will impede economic growth and <\/span>global trade<\/b><\/span>.<\/span> More than that, he indicates the lack of demand for long term commitments will affect the <\/span>container market<\/b><\/span> uncertainty. Despite demand for containers in Intra-Asia trade being better compared to other regions, the midterm outlook does not suggest an increase which was observed back in 2020 and 2021. Falling rates and shortage in <\/span>container trade<\/b><\/span> suggest a weak demand and slower economic growth.\u00a0<\/span><\/p>

Additionally, <\/span>John McCown<\/span><\/a>, a founder of advisory firm Blue Alpha Capital, indicates that the elastic container rates will change the market power to carriers in the long term. They will get more aggressive to cut back the capacity of their vessels.<\/span><\/p>

In conclusion, the global<\/span> shipping industry<\/b><\/span> is still facing an unpredictable situation, with container rates collapsing, weak demand from inflation and a shift from<\/span> trade routes<\/b><\/span> (more increase in export pattern from China to Russia). It is difficult to witness the rebound of the current shipping industry, but the situation can be recovered in the future.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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DocShipper Advice<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Need Optimal Shipping Solutions for Trade?\n\n\n\n\n\n<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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If you can\u2019t consider the best <\/span>shipping solution<\/span><\/a> for your international trade business, DocShipper will provide you with the optimal solution related to international trade in the areas of its expertise including shipping, sourcing and 3PL. Find out our <\/span>services websites<\/span><\/a> and an expert will connect to you.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Contemporary China container pick up\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Sluggish market recovery in China container market<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Container trade patterns<\/b><\/span> and rates remain to be low. The recovery of <\/span>Chinese container markets<\/b><\/span> was influenced by Chinese exports which are<\/span> below the expectation of bouncing back<\/span><\/a> after Chinese\u2019s new year. In October 2022, an oversupply of containers led carriers to seek ways to <\/span>reduce their inventory<\/b><\/span>.<\/span> However, due to worldwide inflation and limited demand, there has been a significant decline in spot rates, contract rates, and <\/span>container prices<\/b><\/span>. The major Asia-US route has seen a sharp decrease in freight prices, dropping by 80%.<\/span><\/p>

\"Contemporary<\/p>

The statistics are not optimistic about <\/span>container market pick up<\/b><\/span>, a report from Container Xchange noted that shipping freights between Asia and the US on the West Coast and East Coast in January 2023 will be 11% and 84% lower, respectively, than in January 2020 and 2022.<\/span><\/p>

The same situation also happens in North Europe where consumer demand is unlikely to recover soon.\u00a0 January 2023 witnessed the rates for picking up 20ft containers and 40ft HC containers from China to North European ports were low, averaging $861 and $823, respectively. Compared back to January 2022, the average pickup fee for a 40HC container on this same route exceeded $3,000. The prices of 20ft containers in the top three ports of Asia: Ningbo, Shanghai and Singapore <\/span>all observed plunging<\/span><\/a> with <\/span>Ningbo decreased from $2,460 to $1,290, Shanghai from $2,370 to $1,270, and in Singapore went down from $2,410 to $1,240.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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China shipping performance toward different regions\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Low export performance between China container trade with US and EU\n<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Despite all challenges back in 2022, China still experiences a <\/span>trade<\/b><\/span> surplus which grew 29.7% from the pandemic year. <\/span>The export growth<\/b><\/a> is large initially in the first quarter, but as the year progresses, it will particularly slow down when Interest rates were raised by central banks to combat inflation.   <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Low export performance between China container trade with US and EU\n<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\"Port

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DocShipper Alert<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Is Your Russia Shipping Strategy Secure?<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Companies must be alert about shipping to Russia and vice versa due to the sensitivity in politics. Before starting trade with Russia, it is wise to connect to a 3PL service provider like DocShipper who has professionals with years of experience when it comes to logistics and suggest the most optimal logistics solution. Get in touch<\/a> with us through <\/span>websites<\/span> for more experts solution.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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South-East Asia experience slump in container\u2019s pick-up\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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<\/p>

Southeast Asia also experienced a significant drop-in <\/span>freight rate<\/strong> and container prices<\/strong><\/span><\/span><\/a>,<\/strong> the same as China. According to the statistics, the average container<\/strong><\/span> price fell by 32% Y-O-Y, from $3,798 in January 2022 to 2,590 in January 2023.\u00a0 Pickup fees dropped \u00a0 by 78% from $311 in December 2022 to $67 in January 2023 and the average pickup fees on the South-east Asia-US trade route decreased by 6.38% in January 2023.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Conclusion\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In conclusion, the China container trade<\/strong><\/span> market has been struggling with slow market pickup in recent times. Low containers pick up<\/strong><\/span> rates have affected international trade and the global economy.  It is difficult to adapt to these uncertainties, therefore you will need DocShipper. We have expertise in dealing and consulting with shipping, sourcing, 3PL or moving.  DocShipper was established specifically to redefine the international logistics process. <\/span>Contact us<\/span><\/a> to find out how we assist you.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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FAQ | China\u2019s Container Trade Market Faces Challenges in Achieving Market Growth\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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