Container prices rise steeply at major ports of India due to Omicron

The spread of new variant Omicron, has disrupted the global supply chains causing the container prices to spike by 10-15% in January at all major ports of India. As per shipping companies, the Chennai port in the first week of January witnessed a rise of $2,100 (Rs 1,55,316) for a 20-foot dry container from about $1,880 in December.
The average price of a 20-ft dry container in Mundra climbed to $1,950 in the first week of January from $1,763 in December. While the Nhava Sheva in Navi Mumbai rose to $1,900 against $1,775 in December. As per market officials, the price of a 40-ft dry container at Chennai Mundra and Nhava Sheva rose to $5,100, $4,900, and $4,850, respectively, from $4,780, $4,650, and $4,600, respectively, in December.
Several factors including the widespread restocking by retailers in China ahead of the Lunar New Year starting February 1 and the country’s rising Covid-19 cases have accounted for the rise of container rates.
“Container turnaround times at major ports in China are once again on the rise due to bottlenecks ports are facing because of rising Covid cases and logistical bottlenecks,” an official from Container xChange said.