BAKU, Azerbaijan, October 1. Container transportation costs across the Caspian Sea increased in September compared with August, the international price reporting agency Argus reported on September 30.
According to the agency, tariffs have been rising since the beginning of the year amid concerns over disruptions to container supplies along alternative maritime routes from China to Europe due to instability in the Middle East.
Higher fuel costs are also contributing to the increase in transportation costs.
“Container carriers have faced a sharp increase in bunker fuel prices in the Caspian and Black seas, which has led to higher freight rates. In addition, not all shipowners are currently willing to send their fleets to the southern Black Sea,” Argus quoted one of the shippers as saying.
According to market participants, a more significant increase in transportation tariffs across the Caspian Sea is being constrained by growing competition from alternative routes for container deliveries from China, including the Northern Sea Route.
According to Argus, the cost of transporting a 40-foot high-cube container (40HC) from Xi'an to Alat/Absheron (Baku) increased to $6,750-$7,200/40HC in September from $6,700-$7,100/40HC a month earlier.
Freight forwarders estimate that transportation of containerized cargo by smaller operators can cost an additional 5%-10%. In September, some carriers estimated the cost of delivering containers from Xi'an to Absheron at $6,800-$7,300/40HC.
Meanwhile, rates for transporting containers from Xi'an to terminals in Tbilisi and Poti stood at $6,900-$7,200/40HC in September, unchanged from the previous month, according to carriers.
The average transit time for container trains along the Xi'an - Altynkol - Aktau - Alat - Absheron route was 14-19 days in September, unchanged from the previous month, carriers said.
According to the agency, the cost of transportation from Xi'an to the Turkish ports of Ambarli and Mersin via Absheron/Alyat increased to $7,200-$8,000/40HC in September from $7,200-$7,900/40HC a month earlier.
The cost of transporting containers to Ambarli, a port located within Istanbul, was estimated at rates at the lower end of the range. The difference in rates between Ambarli and Mersin, located on Türkiye's Mediterranean coast, may amount to $200-$300/40HC.
“The number of idle empty containers in Azerbaijan, Georgia and Kazakhstan remained at 3,500-3,700 units by the end of September, unchanged from August,” the agency said.
