WINNIPEG — Shipping container prices are continuing to fall, but persistent port congestion and labour shortages could bring the decline to a halt, experts say.
Judah Levine, head of research at Freightos, says shipping container prices from Asia to the West Coast of North America have fallen 67 per cent since April, but remain 111 per cent higher than in 2019.
Levine says that while container prices fall, in part to a shift in consumer demand, persistent congestion could slow the decline, especially on the East Coast.
Ester Gerassime, economic analyst for the Ontario Chamber of Commerce, says many global supply chain delays and disruptions are a direct result of congestion, outdated infrastructure and labour shortages throughout the supply chain.
Levine says in 2021 freight prices peaked up to 10 times higher than 2019 rates, as high consumer demand and port congestion led to an extreme hike.
In September, a final report from the National Supply Chain Task Force revealed key supply chain problems for container services, including the need to improve container operating systems and to reduce port congestion.
This report by The Canadian Press was first published Oct. 18, 2022.
The Canadian Press
