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  • 2021 April 29 10:05

    Xeneta container rates alert: shippers on the ropes as long-term contracted rates hit highs and Ever Given chaos continues

    Long-term contracted ocean freight rates are continuing their dizzying ascent, with a 4.1% climb in April leaving container shipping costs up 21.1% year-on-year, with a rise of 23.5% since December 2020. According to the latest market intelligence from Xeneta’s XSI® Public Indices report for the long-term contract market, prices escalated across all major global trade corridors in April, with no immediate relief for shippers in sight. On the contrary, the fallout from Ever Given’s Suez Canal blockage has added further pressure to supply chains already stretched by lack of capacity, equipment shortage, port congestion, and the continued ramifications of coronavirus.
    Xeneta’s XSI® crowd sources the very latest long-term contracted rates from leading shippers and freight forwarders, utilizing over 280 million data points, with more than 160,000 port-to-port pairings, to deliver real-time rates insights every month. A short-term XSI®, mapping fluctuating short-term rates, launched to the market last week.
    “It’s been another incredible month, in a unique year, for the container shipping segment,” comments Xeneta CEO Patrik Berglund. “In the US we continue to see severe delays and bottlenecks, with strong demand – driven in part by changing e-commerce habits – driving rate development. Some shippers are reportedly paying double the contracted rates they enjoyed just one year ago.
    “Meanwhile, in Europe, the Suez Canal incident has created a backlog that has seen ports overwhelmed with cargo, while sailing schedules have suffered a ‘domino effect’ disruption. Here we can expect to see implications stretching well into May, and even June. Furthermore, shippers with cargoes on the affected ships have had initial delays to goods exacerbated by carriers dumping containers wherever they can in a rush to load available empty containers and get back on track. This means a rash of consignments are stranded in the wrong locations with no plans to rescue them. Seen as a whole the situation leaves carriers in a position of supreme strength, essentially able to pick and choose assignments and customers, and does not bode well for shippers desperate for much-needed rates relief.”
    There was, Berglund points out, anything but relief in April. All trade corridors on the long-term XSI® showed indicators pointing relentlessly upwards. In Europe the imports benchmark continued towards the stratosphere, climbing by 5.4% month-on-month to end 43% up against April 2020, and a huge 47.7% up since the start of 2021. Exports increased by 2.3%, showing a more modest 7.3% year-on-year gain.
    Far East imports edged up 0.2%, some 15.7% up against the same period last year, while exports showed more marked improvement - appreciating a further 5.3% month-on-month to stand 43.9% up against April 2020 (39.4% since the beginning of the year). Both US benchmarks also showed positive development, with imports climbing 3.5% (up 3.8% year-on-year) and exports rising 3.3%. However, this final figure is the market anomaly, remaining 5.7% down against April last year, even though this year has seen an overall climb of 5.6%.
    In addition to this current snapshot, Xeneta also cautions that the short-term XSI® is now showing increases on trans-Atlantic trade lanes, suggesting further long-term rates pain for shippers may lie ahead.
    “It’s undoubtedly excellent news for carriers,” adds Berglund, “and we continue to see the manifestation of that in company financials. For example, OOCL has revealed revenues of USD 3billion for the first quarter, a staggering 96% higher than this time last year, driven by both higher volumes (up 28.3%) and significantly higher revenues per container, up 58.3%. This comes on the back of last month’s sensational results from Maersk, CMA CGM, and Hapag-Lloyd, amongst others.
    “It’s also worth noting pro-active strategies from some players to make the most of market opportunity. Here we can again reference Hapag-Lloyd, which has announced a EURO 550million investment in new containers – one of the industry’s largest ever orders. In an environment where equipment is in short supply, this is an ambitious move to shorten turnaround times, improve service and secure added market share.”
    Berglund concludes that it is difficult to see any short- to medium-term decline in rates in a segment that is currently “in overdrive”.
    “Negotiations are difficult,” he says, “so it’s important to keep abreast of the latest intelligence and maintain a limber strategy to make the most of opportunity, wherever it arises. That’s really the key to all stakeholders getting the maximum value for their business in such a competitive, dynamic and always exciting marketplace.”
    Companies participating in Oslo-based Xeneta’s crowd-sourced ocean and air freight rate benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Lenovo, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere, 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 280 million contracted container and air freight 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.

2022 December 9

09:28 RF Government allocates RUB 37.7 billion for the comprehensive development of Murmansk Transport Hub

2022 December 8

18:37 Port of Melbourne reaches next stage in remediation of Swanson Dock West
18:07 APM Terminals in Nigeria announces management changes
18:00 Contracts for construction of 5th and 6th icebreakers of Project 22220 may be signed in December 2022 – Vyacheslav Ruksha
17:44 Hyundai Heavy Industries to develop ammonia FSRU - BusinessKorea
17:39 Academy of Industry Markets welcomes to LNG Market online course
17:34 CMA CGM may double methanol-fuelled boxship order - Ship & Bunker
17:22 Stockholm Norvik Port starts new train service
17:16 Freeport of Ventspils cargo turnover in 11M'2022 increased by 32% YoY to 13.3 million tonnes
16:50 NSR fleet of icebreakers to number 17 units by 2030 and 22 units by 2035 – Vyacheslav Ruksha
16:47 Terminal operators upgrade rail-shortsea connection at Rotterdam
16:27 Plan for NSR development until 2035 foresees creation of container shipping fleet numbering 9 containerships of Russian transit operator
16:05 OOCL presents 2023 OCEAN Alliance products
15:28 Oil tankers with P&I club insurance piled up at The Bosphorus Strait
15:25 Oboronlogistics to continue acting as cargo agent for two ferries operating on Ust-Luga-Baltiysk line
14:46 Total dividends paid by CPC-R this year to exceed RUB 66 billion
14:23 TAQA, ADNOC, and Mubadala complete transaction for stake in Masdar Clean Energy Powerhouse
14:03 BCG and ABS combine expertise to support marine and offshore decarbonization
13:43 Tallink takes delivery of ferry MyStar
13:28 SCZONE signs 7 MoUs for green fuel production
13:02 Shekou Container Terminals implements Portchain Connect
12:43 Equinor wins commercial-scale offshore wind lease in California
12:31 MABUX: Bunker Weekly Outlook, Week 49, 2022
11:58 Sevmorput is about to complete its second subsidized voyage from the Far East to Saint-Petersburg with 46-pct loading
10:55 Eurochem is ready to transfer its ammonia shipment terminal from Estonia to Russia
10:09 INTERCARGO issues statement on IMO decarbonisation measures
09:42 ADNOC creates Low Carbon Solutions & International Growth vertical
09:30 New anchorage in Ust-Luga seaport is intended for ship-to-ship transshipment of fuel
09:22 AD Ports signs collaboration agreement with Africa Finance Corporation
08:27 CMA CGM to upgrade its Zanzibar Feeder service

2022 December 7

18:27 SBTi launches world-first roadmap for net-zero shipping by 2040
18:09 IPEM expects Russian Railways' network loading to fall by 4% this year
17:44 NYK conducts successful demonstration of new cargo hold monitoring system featuring IoT sensors
17:23 Sempra Infrastructure announces agreement with ENGIE for supply of U.S. LNG from Port Arthur LNG Phase 1
17:16 ASOP expects throughput of Russian seaports to grow by 3-5% in 2023
16:47 The major shipping lines post an operating profit of USD 122bn in Jan-Sept 2022 - Sea-Intelligence
16:30 Market players report idle time of ships in the Far East ports of Russia of up to three months
15:45 Oil exports from Russia in the first 11 months of 2022 increased by +11.2% to 199.4 mln tonnes
15:33 Throughput of Murmansk Sea Fish Port in November 2022 rose 1.8 times YoY
14:45 LR certifies DriX uncrewed surface vessel
14:31 Trade turnover between Russia and China in 11M’22 rose by 32% YoY to $172.41 billion
14:02 Russian coal exports up after EU loosens curbs - Bloomberg
13:34 GPA approves a plan to renovate the docks at the Port of Savannah’s Ocean Terminal
13:29 Container traffic on Russian Railways’ internal network in 11M’2022 rose by 3.4% YoY
13:04 OSR plan approved based on drill results in CPC Marine Terminal water area
12:40 Bunker sales at Vladivostok port in 11M’2022 fell by 25% YoY
12:17 Number of containers with Chinese goods delivered to Saint-Petersburg surged 12 times this year
12:13 Charleston Harbor becomes the deepest harbor on the U.S. East Coast at 52 feet
11:58 Dynamar forecasts that perishable export volumes to fall slightly in 2022
11:31 Viking Line chooses Finnish flag for Viking XPRS
11:13 Sredne-Nevsky Shipyard to launch two passenger catamarans of Project 04580, Kotlin, in spring 2023
11:08 WinGD wins engine diagnostics orders as ship owners look to reduce OPEX
10:35 EU sanctions on Russia cost Cyprus 20 pct of oil tanker fleet - Xinhua
10:15 Semakovskoye gas field enters operation on Yamal
09:24 CMA CGM to acquire flagship terminals in the Port of New York and New Jersey
09:21 Ship of Project NE-020.2 Anatoly Cherneyev registered with Korsakov (Sakhalin) as its homeport

2022 December 6

18:36 SCZONE receives an economic delegation from the European Union
18:06 Puerto Aguadulce handles largest-capacity vessel to dock in Colombia
17:57 RF Ministry of Transport addressed with a proposal to reduce fuel expenses of fishing ships operating in remote areas
17:46 Port of Belledune signs MOU with Port of Hamburg