Container shipping rates from China are down 58% and 70% year-on-year to Rotterdam and Los Angeles, respectively. The composite World Container Index has declined for 30 consecutive weeks.

The decline in container shipping rates is pegged to a bleak global economy, following record highs and shipping profits captured post the onset of the COVID-19 pandemic. Containers have maintained a prolonged high in comparison to bulk shipping rates, which dropped more rapidly to within the 2019 range by the end of 2021.

While container rates are still significantly above their 2019 level, the decline is adding relief to several metal industries, which have operated at tight margins with prices in a tug of war between high production costs and weak demand. Project Blue expects the bleak economic situation to remain over Q4 2022 with the next uplift in metal demand forecast to materialise after the Chinese New Year.