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March 4, 2024

10-15% Hike In Container prices In India as Omicron Hits Global Ports

By Shivani

The Container prices see a 10-15% jump in January  ports because of  the widespread Omicron variant of the COVID-19. The virus has disrupted the global supply chain majorly. 

The continued inversion at Chinese ports and congestion at US and UK centres are one of the reasons for inflation in the container prices. 

In the first week of January, the average price of a 20-ft dry container at Chennai port rose about $2,100 from $1,880 in December. In Mundra, the price of the same container jumped to $1,950 in the first week of January from $1,763 in December. In Navi Mumbai, the average price costs $1,900 which earlier in December was $1,775, as per the market sources. 

The price of a 40-ft dry container climbed to $5,100from $4,780 at Chennai port whereas in Mundra and Nhava Sheva, the rates jumped to $4,900 and $4,850 respectively, from $4,650 and $4,600, respectively. 

The hike in prices is due numerous factors, which includes widespread restocking by Chinese retailers ahead of the Lunar New Year starting February 1 and growing COVID cases. China has suspended trucking activities in several parts of the country and accompanied with strict control on the movement of goods in several districts, this has slowed down the movement of containers in major Chinese ports as per the Bloomberg’s report. 

A rise in Indian exports has also led to increase in spot containers leading to price hike at major ports in the country, as per the experts. According to the preliminary data provided by the commerce ministry, India’s exports increased 335 to $7.63 billion during the first week of January on account of sales of engineering goods, petroleum, and gems and jewellery.

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