• Home
  • News
  • Liners can breathe a sigh of relief as global rates show positive development across key trades, Xeneta report shows
  • 2019 November 28 15:06

    Liners can breathe a sigh of relief as global rates show positive development across key trades, Xeneta report shows

    The ongoing trend of downward pressure on long-term contracted ocean freight rates appears to have been broken, or at least temporarily derailed, with marginal increases seen across the board in November. According to the latest XSI® Public Indices report from Xeneta, which provides unique business intelligence based on real-time crowd-sourced data from the world’s leading shippers, global rates climbed by 0.9% over the last month. This disrupts a long-term pattern of decline that, with the exception of a sizable and unexpected rise in May, has been ongoing since Summer 2018.

    Oslo-based Xeneta’s XSI® Public Indices report utilises over 110 million data points, covering over 160,000 port-to-port pairings, to provide unparalleled insight into the very latest market moves. In November, those moves were, according to Xeneta CEO Patrik Berglund, surprisingly positive for the somewhat beleaguered container industry.

    Back to black

    “We’ve gotten so used to seeing the arrow pointing downwards over the course of the last year and a half or so that a push ‘into the black’ comes as a minor shock to the system,” he says. “It just goes to show how unpredictable the ocean freight segment remains. With that in mind, it is vital, for all parties in the chain, to stay abreast of the latest intelligence to stand any chance of getting optimal value from contract negotiations.”

    Although the index remains 4.0% lower than the high of 116.19 reported in May (currently standing at 111.54 points) it is now up 0.8% year-on-year, and has increased by 3.0% since the end of 2018. And it’s not just the index that’s ‘in the black’.

    “The carriers have posted largely positive results for Q3,” Berglund explains, “with the German line Hapag-Lloyd reporting a net profit of $168m – that’s against a profit of just $15m this time last year. Meanwhile, the world’s largest carrier, Maersk, reported a very healthy net profit of $520m. Even Yang Ming’s loss of NTD 1.38bn is not as bad as it seems on the surface, as if options had been exercised on previously chartered vessels they too would be in the black. So, the latest news is not as bad as many will have feared.”

    Regional insights

    This is reflected in the XSI® regional import and export breakdowns, which all registered moves in the right direction. The import and export benchmarks for Europe climbed by 0.2% and 0.6% respectively, while shipowners will have been further buoyed by a draft paper from the European Commission suggesting the EU Consortia Block Exemption Regulation (BER) will be extended until 25 April 2024 (this allows carriers to participate in alliances with a market share of up to 30% on EU trades).

    In the Far East the XSI® import index showed a 1.2% increase (although it remains down 16.5% year-on-year) with exports rising by 0.5%. US imports climbed by 1.4%, boosting a trend that has driven a 27.3% increase since April this year, with exports registering a 1.5% rise.

    Plot twists ahead?

    Although all the key indicators are moving upwards Berglund warns that, as ever in the unpredictable ocean freight sector, nothing can be taken for granted.

    “World trade, and this segment is at the vanguard of that, still faces uncertainty on a number of fronts, and that obviously impacts upon the demand-rates dynamic,” he comments. “For example, there’s been no noticeable trade negotiation developments between the US and China and I’m not sure anyone really knows what’s in store next. Reports suggest that the tit-for-tat ‘war’ they’ve become embroiled in will contribute to the first full-year decline in volumes on the Eastbound transpacific trade since the depths of the global financial crisis in 2009. The carriers are feeling that pain.

    “Furthermore, there’s ongoing wider economic and geopolitical concerns, mixing with serious single issues such as Brexit – with the next season of this ongoing drama due to hit our screens after the UK general election in December. When we add in the carriers’ attempts to formulate strategies to claw back the additional cost of low Sulphur fuels to comply with IMO 2020, well… further uncertainty reigns.”

    Knowledge is power

    Berglund concludes: “Although the sector is always changing, our message stays the same – keep up to date with the very latest market intelligence to get maximum value for you and your stakeholders. As November’s developments illustrate, there’s no such thing as business as usual in the ocean freight segment.”

    Xeneta’s XSI® Public Indices is based on crowd-sourced rates data from leading global shippers. Companies participating in the platform include names such as Electrolux, Continental, Unilever, Lenovo, Nestle, L’Oréal, and Thyssenkrupp, amongst others.

    About Xeneta

    Xeneta is the leading ocean freight rate benchmarking and market intelligence platform transforming the shipping and logistics industry. Xeneta’s powerful reporting and analytics platform provides liner-shipping stakeholders the data they need to understand current and historical market behaviour – reporting live on market average and low/high movements for both short and long-term contracts. Xeneta’s data is comprised of over 110 million contracted container rates and covers over 160,000 global trade routes. Xeneta is a privately held company with headquarters in Oslo, Norway and regional offices in New York and Hamburg.




2021 October 27

18:22 IMC Shipping appoints Mingfa Liu as managing director for ship services
18:07 TotalEnergies and MOL hold naming ceremony of France’s first LNG bunker vessel
17:51 Damen built LNG bunkering vessel enters service in the Gulf of Finland
17:42 Rosmorport takes delivery of LNG-powered Ro-Ro ship Marshal Rokossovsky
17:40 DEME Offshore installs final foundation at Hornsea Two offshore wind farm
17:34 Port of Zeebrugge posts a strong growth in nine months of 2021
15:40 Dublin Port volumes down by 3.3% after nine months of 2021
14:33 IMO considers midterm-measures for GHG reduction from ships
14:12 BIO-UV Group adds 3d scanning to turnkey BIO-SEA BWTS retrofit services
13:50 Ocean Yield agrees to invest in six VLCCs with 10-year bareboat charters to International Seaways
13:02 WinGD invests in training as gas-fuelled fleet grows
12:52 Vyborg Shipyard contracted to build an 18 MW icebreaker for Rosmorport
12:38 Zero emissions by 2050 is not enough for most developed countries if planetary warming is to be limited to 1.5 degrees - DNV
12:37 The LNG Fleet, LNG Bunkering and Other Alternatives Conference kicks off in Moscow
12:06 FESCO to supply Indian stations in Antarctica for another 5 years
11:51 Constructora Vale Verde places a repeat order for a cutter suction dredger with Damen Shipyards
11:19 MarineMax reports record fourth quarter and fiscal year results
11:18 FSRU Marshal Vasilevskiy completes maiden voyage with LNG cargo on the Northern Sea Route
10:09 Siemens Gamesa solidifies offshore presence in U.S. with Virginia blade facility
09:55 MABUX: No firm trend on Bunker market on Oct 27
09:33 Baltic Dry Index as of Oct 26
09:25 Aquadrill announces sale of a semisubmersible drilling unit
08:57 Oil prices edge lower

2021 October 26

18:06 FarSounder and NAVTOR announce a new partnership
17:49 Russian State Duma approves a bill on wrecks removal in the first reading
17:36 FuelEU can do more for the decarbonisation of shipping – World Shipping Council
17:08 First global hydrographic innovation and technology laboratory established in Singapore
16:31 BIO-UV Group adds 3D scanning to turnkey BIO-SEA BWTS retrofit services
16:24 Wärtsilä commits to carbon neutrality by 2030
16:05 CSL Americas takes delivery of second converted self-unloading ship
15:27 Damen Maaskant Shipyards Stellendam delivers 38-metre Beam Trawler to Rederij Long Ships
15:17 Vard Electro dual-battery pack to reduce emissions for Siem Offshore subsea vessel
15:01 Baltic Shipyard marks successful loading of shield tank duo onto the 22220 nuclear icebreaker Yakutia
14:13 BW Energy signs an agreement for the acquisition of semi-submersible drilling rig for the Kudu development
13:19 Wallem Group appoints John-Kaare Aune as new Chief Executive Officer
12:13 DP World: RWG terminal to be the first carbon neutral container terminal in the world
11:32 ClassNK grants Innovation Endorsement for Products & Solutions to Weathernews’s CIM
11:02 AIDA Cruises’ new cruise ship completes its first voyage on the river Ems
10:51 Sea Machines names Trevor Vieweg as new chief technology officer
10:14 TECO 2030 receives NOK 50 million in government support for fuel cell development
10:07 MABUX: Bunker prices may demonstrate irregular changes on Oct 26
09:54 Baltic Dry Index as of Oct 25
09:51 San Pedro Bay ports announce new measure to clear cargo
09:09 Oil prices continue to climb

2021 October 25

19:59 Severnaya Verf readies the 170701 series factory freezer trawler Kapitan Sokolov for shore power connection
18:13 CMA CGM applies Winter Surcharge in the Russian ports of St Petersburg, Bronka and Ust-Luga
17:44 Estonia’s Elenger takes delivery of first Damen LGC 6000 LNG bunkering vessel
17:34 Carnival Cruise Line christens Mardi Gras in first naming ceremony in the U.S. since industry restart
16:57 Sembcorp Marine clarifies report on the Johan Castberg Project
16:47 Two ways to experience the Fort Lauderdale Int'l Boat Show
15:23 Trafigura Group closes USD2.4 billion-equivalent syndicated revolving credit facility and term loan facilities
14:22 Sea Port of Saint Petersburg’s employees support package during COVID-19 pandemic
14:02 Svanehøj launches a new control system makes P&C offloading faster and easier
13:20 PIL launches new direct China to Gulf Service – Gulf China Service
12:15 Port of Hamburg honoured as ‘Best Seaport – Europe’
11:35 LR granted AiP to Samsung Heavy Industries for liquefied hydrogen carrier
11:12 Rosmorport updates Port of Ust-Luga data in the Register of Russia’s seaports
10:17 MABUX: Bunker prices may demonstrate upward changes on Oct 25
09:38 Russian Gov’t gives green light to imposing some port services tariffs in foreign currency
09:21 Baltic Dry Index as of Oct 22