Despite expectations of price drops post-Chinese New Year, the market for containers is witnessing a significant mismatch between buyer and seller price expectations, because of continued strong demand, according to Container xChange.

“Buyers are expecting price reductions in weeks to come, while sellers are holding off the inventory as they expect prices to remain stable due to tight capacity, especially after the diversions due to the Red Sea, and highly imbalanced trade, particularly, for example from China into Russia,” said Christian Roeloffs, cofounder and CEO of Container xChange, in a statement March 18.

China’s exports to Russia grew by 12.5% year on year in the first two months of 2024, while imports rose by 6.7%.

Data from Container xChange's market intelligence team shows that while there is a surplus of units held up in Russia, capacity in that region remains saturated. But this situation has not created enough confidence for significant price drops and has resulted in a cautious approach from both buyers and sellers, leading to a gradual filling up of depots. 

"Looking ahead," Roeloffs continued, "while mid to long-term forecasts suggest a necessary adjustment in prices to restore liquidity, the present market sentiment indicates a reluctance to anticipate significant price drops."

"The decline in freight rates and the steady container prices suggest that demand is under pressure. Additionally, the management of the Red Sea crisis has alleviated concerns of sudden container price rises, providing a more predictable environment for freight forwarders and stakeholders," said Roeloffs.