China’s container logistics sector is facing significant challenges due to falling container prices and leasing rates amid weakened cargo demand. The market is witnessing an increasing surplus of inventory, complicating the movement of containers. Insights from a recent China market update indicate that many stakeholders are concerned about the accumulation of containers at depots, hampering efforts to manage stock.
Christian Roeloffs, CEO of Container xChange, noted that tariff uncertainties and the slowdown in cargo transport have exacerbated the situation, leading to a decline in container prices and leasing rates in March. The average price for 40ft high-cube containers has dropped considerably, from $2,859 in November 2024 to $2,539 in mid-March 2025. This trend is not isolated to China; other major Asian ports such as Hong Kong, Singapore, Nhava Sheva, Haiphong, and Ho Chi Minh City are experiencing similar declines in container prices.
This broader regional trend reinforces the notion of a market correction driven by weakened demand and rising inventory levels. Container leasing rates are also on a downward trajectory. For example, the one-way leasing rate from Shanghai to New York has fallen by 24%, indicating an oversupply of containers in China.
This oversupply is influenced by a greater number of containers returning to China than those leaving, coupled with reduced freight demand affecting both shippers and leasing companies. The downturn in the container market is consistent with declining economic indicators in China, including a near 27.1% drop in Foreign Direct Investment. With U.S. importers overstocking inventories in anticipation of potential tariffs, container prices and leasing rates are expected to remain suppressed through the latter half of 2025, driven more by order front-loading than an actual surge in consumer demand.
Looking ahead, traders should brace for ongoing price softness while lessors should explore repositioning opportunities beyond the China-U.S. trade route. The possibility of U.S. interest rate cuts may offer some relief by boosting consumer demand, potentially aiding container flows in the future.