Container pickup charges have increased over the last couple of years. This blog will help you understand more about these charges in-depth. Read on to find out why they’ve increased, who levies them and why they’re put into place.
What are container pickup charges?
A container pickup charge is a one-time charge for each container that is picked up at the port of loading (POL). The process is as follows; container owner and user negotiate the pickup charge for each deal and the charge is then to be paid by both the supplier and, or the user, depending on the market situation. For example, in locations where suppliers face container shortages, the cost will typically be paid by the user; if the user picks up boxes with a large surplus and moves it to a deficit location, then the supplier pays this cost.
Who charges container pickup fees?
There are two participants in every transaction: the buyer and the seller. When it comes to container pickup charges, one or both of them may wind up paying the fees, but this is usually dependent on the contract between the two. Usually, the forwarder is the one who charges container pickup fees. However, this can be charged by both the container user and the supplier. To understand the contract, it’s important to know what Incoterms are. Click here to read more about the latest updates on Incoterms.
Why are container pickup charges levied?
To learn how the current market situation reflects on the pickup charges, we have analyzed thousands of data points from successful transactions on Container xChange. But before we run through the findings, let’s briefly explain why there are pickup charges when organizing one-way container moves and how you calculated them.
These charges are levied in order to create balance and regulate empty container repositioning. Let’s look at a location in which the supplier has a shortage of containers first. In this case, it could be China with decreasing container availability, the pickup charges will typically be paid by the user.
While if the user picks up boxes from a location with a surplus, such as the US or Europe, at the moment, and moves it to a deficit location, the supplier often pays container users to reposition their empty equipment into deficit locations.
Pickup charges for container users
Stretch | Average PU rate in USD |
Antwerp to Mundra | $ 200 |
Port Kelang to Karachi | $ 250 |
Port Kelang to Nhava Sheva | $ 115 |
Qingdao to Moscow | $ 1312 |
Shanghai to Duisburg | $ 900 |
Shanghai to Moscow | $ 1314 |
Shanghai to Warsaw | $ 1325 |
Pickup charges for container suppliers
Stretch | Average PU rate in USD |
Antwerp to Dalian | $ 424 |
Antwerp to Qingdao | $ 474 |
Antwerp to Shanghai | $ 540 |
Antwerp to Tianjin | $ 578 |
Duisburg to Qingdao | $ 623 |
Duisburg to Shanghai | $ 643 |
Duisburg to Tianjin | $ 498 |
Rotterdam to Shanghai | $ 683 |
Rotterdam to Qingdao | $ 686 |
Container pickup charges are increasing
Pickup charges for container users are becoming more expensive across Chinese ports due to increasing container imbalances. Prices have reached an all-time high per container from Shanghai (China) to Duisburg (Germany).
According to Container Availability Index data, European and the US importers currently struggle to return empty containers to Asia. As a result, these ports suffer from increasing dwell times and port congestion. On the other hand, carriers in Chinese ports are setting new regulations to control the imbalances. Hapag Lloyd will only release empty containers from its mainland China depots for a maximum of eight days prior to the arrival of the sailing.
It seems as though the pandemic has left us all with reminders that though the measures have decreased, it still affects some ports. Strict Covid-19 measures call for strict inspection; one port in Guangzhou still has epidemic control measures which cause delays in shipments. These delays can be linked to container charges. However, you can avoid these charges with Container xChange!
Avoid container pickup charges with Container xChange
Our platform allows you to find containers to buy, sell, or lease without the hassle of switching from hundreds of different sites. Container xChange has a wide variety of quality containers across 2500+ locations. Choose yours from 1500+ vetted suppliers absolutely commission-free! You can avoid charges by leasing one-way containers on Container xChange.
A one-way container is as the name suggests, a container that makes its way across one stretch carrying cargo from one destination to another without any stops in between or after arrival. Leasing one-way containers allow you to have flexibility on positioning options with pre-determined sites. This benefit of a one-way leasing container means that in the end, you’re saving money and avoiding these charges.
This is possible because, with one-way containers, the box travels from one destination directly to the next, so there’ll be no extra charges for delays caused by having to load/unload the container.
Lease one-way containers on Container xChange at affordable prices, get access to container tracking and check your credits or charges online in real-time. Gone are the days of filing paperwork and spending hours on tedious admin. You’ll be able to do it all on one platform!
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Container pickup charges: Common FAQs
What are container pickup charges?
A container pickup charge is a one-off fee for each container that is picked up at the port of loading (POL).
What is a port of loading?
A port of loading is a port where cargo is loaded onto vessels and readied for shipment. This is usually done on a seagoing vessel and transported via ocean.
Why are container pickup charges levied?
Container owner and user negotiate the pickup charge for each deal. This charge can be paid by both the supplier or the user, depending on the market situation.