• 2020 May 30 15:27

    Xeneta Container Rates alert: continued global uncertainty hits rates, but worst fears yet to be realised

    With the collapse in demand and glut of supply in the container vessel segment, analysts may have been fearing the worst for developments in long-term contracted ocean freight rates. However, despite the widespread ramifications of Coronavirus, rates held comparatively steady for the month of May, with the latest XSI® Public Indices report from Xeneta registering a 1.2% decline. This follows a 0.7% increase in April, leaving the index up 1.7% for 2020 so far. That said, the future, Xeneta cautions, remains defined by uncertainty.

    Proactive Approach
    Oslo-based Xeneta’s XSI® provides unique intelligence on the very latest ocean freight market moves. Based on crowd-sourced data from leading shippers, the report utilises over 200 million data points, covering more than 160,000 port-to-port pairings, to provide a real-time picture of industry developments.

    The unexpected rise in April, after a 0.5% fall in March, was attributed to the proactive strategies of container ship operators, who were withdrawing market capacity and adjusting sailings in an attempt to balance supply and demand. That approach continues to mitigate damage, while the gradual opening of national economies is, Xeneta CEO Patrik Berglund explains, giving some room for optimism.

    Early days
    “Given the debilitating effects of the pandemic on global economic activity, there may have been a belief that rates would freefall, but not so,” he comments. “Owners have been quick to remove surplus capacity and as some, particularly European, countries cautiously reopen we’re seeing carriers, such as those in THE Alliance, announce plans to reinstate sailings.

    “Contracted rates have held up well, some would say surprisingly so, while spot rates on key routes have also stood strong. With some national governments stepping in to support the industry - such as those in South Korea and Taiwan, who have both announced emergency funding of USD 1billion for shipping – a ‘blood bath’ has largely been avoided. Nevertheless, it’s early days and many owners have posted worse than expected Q1 results and, it has to be said, will be dreading going public with Q2 figures.”

    Fluctuating fortunes
    He continues: “The future, unfortunately, remains uncertain. That makes it absolutely essential for all stakeholders in the shipping value chain to access the latest intelligence to ensure they stay up to speed and get optimal value when negotiating rates.”

    That sense of unpredictability has been evident in the regional developments revealed by Xeneta’s XSI®, which is based on a unique collection of crowd-sourced rates data pooled from leading global shippers.

    In Europe the import benchmark continued its decline, falling (for the third consecutive month) by 2%, down 2.2% since the start of the year. Exports however continued to perform robustly, with rates increasing by 0.8% and now 6.1% up for the year (5.7% year-on-year). Far East imports, meanwhile, surged by 3.9%, with the figure up 6% in 2020 to date. A performance that couldn’t be matched by the export index, which fell 1.4% in May, but remains up 1.7% for the year, but down 6.1% year-on-year.

    Both the import and export benchmarks fell in the US, with the former declining by 1.5% (up 1.8% since the start of 2020) while the latter slid by 3.4%. It is now just 0.2% up for the year, but 1.6% up year-on-year.

    Positioning for success
    “It’s obviously not all doom and gloom for contracted rates, even though the challenges the industry (and indeed the world) face should not be underestimated,” Berglund concludes. “Owners and operators are clearly up for the fight and moving decisively when and wherever that’s possible. We can see clear evidence of that in the work of the Digital Container Shipping Association (DCSA), made up of the largest carriers, which is looking to introduce a paperless bill of lading and potentially save billions of dollars in costs. A much-needed efficiency.

    “Shippers have to stay equally as limber in this environment, keeping up to speed with real-time market developments. Nobody knows what will happen next, but with the insights enabled through the latest data you can at least position your business to gain competitive advantage. That’s more essential now than ever.”

    Companies participating in Xeneta’s crowd-sourced data 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 200 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.




2020 October 24

15:47 Ocean transport of the first lot of railway coach to Myanmar completed
14:51 OOCL announces services changes and enhancements on Asia-Europe trade
13:28 Port Authority launches new campaign against litter
12:41 Hapag-Lloyd announces Ocean Tariff rates on East Asia - NEC and Mediterranean trade
11:06 CSD Hussein Tantawy successfully launched at IHC's shipyard in The Netherlands

2020 October 23

18:09 Baltic Data Flows: New HELCOM project seeks to harmonize and harvest environmental data at a pan-Baltic level
17:47 ICS welcomes legally binding agreement to significantly improve carbon efficiency of shipping
17:10 Anti-submarine ship Vice-Admiral Kulakov completes its business call to Greece
16:32 Bollinger Shipyards delivers 41ST fast response cutter to the U.S. Coast Guard
16:05 APM Terminals Poti signs a contract with Poti New Terminals Corporation for the development of dry bulk facility in the Poti Sea Port
15:31 HySHIP project clinches EUR 8M funding award
15:13 Krasnoye Sormovo shipyard launches dry cargo carrier Alfa Mercury
14:50 Self-propelled crane built for RF Navy’s Pacific Fleet arrived in Vladivostok having passed the Northern Sea Route
14:25 Equinor changes chief financial officer
14:06 Membrane technologies of GTT is an optimal solution for gas carriers, LNG bunkering and storage
13:23 MarineMax participates in the Fort Lauderdale International Boat Show
13:05 Wärtsilä selected to power new ‘super ferries’ series for P&O Ferries
12:55 An agreement made to explore the possibilities of green hydrogen export from Iceland to Rotterdam
12:04 Tallink Silja AB is forced to issue redundancy notice to Swedish crew members
11:41 Tallink to become the first shipping company to receive Sustainable Travel Finland label
11:09 Austal to further expand Australia support business through acquisition of BSE Maritime Solutions
10:53 NYK to make Gazocean a wholly owned subsidiary
10:19 Bunker market sees slight change of prices in the Port of Saint-Petersburg, Russia (graph)
09:55 National Gas Vehicle Association to propose priority measures for LNG bunkering support
09:33 Oil prices continue decreasing
09:18 Baltic Dry Index as of October 22
08:49 MABUX: Bunker market this morning, Oct 23
08:19 CMA CGM announces GRR from Asia to West Africa

2020 October 22

19:00 “K”Line online training for seafarers obtained DNV GL certification
18:04 Milaha reports QR 384 million in net profit for the nine months of 2020
17:41 Port of Los Angeles receives $9.9 million infrastructure development grant
17:36 Feasibility report on ship repair cluster development in Arkhangelsk Region to be completed in November 2020
17:29 MABUX releases weekly review of bunker market
17:05 Gothenburg Port Authority CEO becomes the member of newly established Electrification Commission
16:44 ABP’s ports in East Anglia keep agricultural products moving
16:14 ONE adds new service from Asia to Indian Subcontinent
15:50 Bunker prices are flat in the Far East ports of Russia (graph)
15:34 EU awards funding to Kapellskär-Naantali Maritime Bridge environmental initiative
15:04 Environmental Protection Agency signs a proposed rule for reducing the environmental impact of discharges
15:03 ABS and TCOMS join forces to research next generation marine & offshore and maritime solutions
14:44 Floating nuclear power plant covers over 50% of electric energy demand in Chukotka
14:20 The average value of the Ningbo Container Freight index 1 in October increases by 1.2%
14:20 MPA-SSG-WSG joint media release: 1000 traineeships, company attachments and training opportunities for more Singaporeans to join maritime sector
14:03 Global Ports Holding signs sale and purchase agreement for Port Akdeniz
13:57 Port of HaminaKotka specifies minimum requirements for berthing and unberthing services
13:25 Rosmorport's Murmansk Branch performed pilotage of Sedov barque
13:01 Container throughput of Chinese ports still decease slightly in January - September 2020
12:52 Zhigalovo Shipyard lays down fifth ship of Project 3052 for Rechvodput
12:26 MPA-ABS MoU to advance R&D activities in maritime Singapore
12:13 Multi-million-euro project transforms CO2 into green raw material in North Sea Port
11:56 Private investments in infrastructure of Arkhangelsk port totaled RUB 25 billion in 7 years
11:18 Port of Long Beach posts results for in September 2020
11:11 Russian President Vladimir Putin signs order on merging Sevmorzavod into USC
10:07 ZIM offers new service to the UAE
09:58 Sea Port of Saint-Petersburg expands its cargo space
09:36 Oil prices continue decreasing in response to growing US reserves
09:19 Baltic Dry Index as of October 21
09:05 The Grimaldi Group takes delivery of the Eco Valencia and Grande Florida
09:03 MABUX: Bunker market this morning, Oct 22
08:52 MSC Cruises to implement next-generation air sanitation system developed by Fincantieri for the cruise industry