News / Market shifting as more containers are shipped back to China

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Strengthening global demand and continuing congestion in Europe is prompting a shift in containers being moved back to China, reinforcing an imbalance in the market, to which European shippers are overly exposed.

According to a new report from Sogese, the congestion that has gripped European depots for months has led equipment owners to reposition containers, sending many back to China, potentially to the detriment of European exporters.

Andrea Monti, CEO of Sogese, said: “What we are seeing in the market is a clear directional shift in container flows. Depots across Europe remain congested, while prices and demand signals in China are strengthening.

“Carriers are actively repositioning equipment back to origin, and this is likely to reduce European stock levels in the near term, particularly 40ft high-cubes, as production and demand begin to align again.”

The report noted routing boxes back to China had been prompted by container prices showing signs of picking up, “reflecting strengthening demand signals at origin”.

In contrast, it said, the congestion in Europe meant pricing dynamics were less responsive to where demand actually sat, compounding a sense of regional imbalance in the market.

Mr Monti said: “Across Europe [there] is a clear slowdown in container rotation. Each additional day at sea or waiting at port reduces how often equipment can be reused. That is why availability feels tight, even in a market that appears oversupplied.”

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