The rise in prices of Chinese containers. Causes and consequences

During the last month of May, the prices of containers from China have increased considerably compared to those in the months of April and March.

And although this has been a constant since the attacks on merchant ships in the Red Sea, the increase in prices from March to May has been approximately 88% in 40' HC (High Cube) containers according to different customers.

This price increase causes SMEs (small and medium-sized enterprises) to have great difficulties when it comes to managing costs and securing containers. In addition, due to the instability and shortage of containers in China, the demand for containers has increased and, consequently, container prices. In turn, the increase in demand has caused a price increase in freight rates as a result of higher occupancy by carriers.

The increase in freight prices directly affects the plastic extrusion sector since, as China is the No. 1 exporter of plastics worldwide, all those companies that are dedicated to the manufacture of products using plastic pieces, find it difficult to access one of the largest exporters of plastic extruded products such as PP sticks or PVC profiles from all over the world.