• Home
  • News
  • Spot rates from the Far East to US West Coast collapsed by 46.3% over last 12 weeks - Xeneta
  • 2022 September 23 12:31

    Spot rates from the Far East to US West Coast collapsed by 46.3% over last 12 weeks - Xeneta

    Carriers are fighting to shore up falling spot rates from the Far East to US West Coast, blanking some 1.5 million TEU of capacity over the last 12 weeks, according to Xeneta. However, despite this bold strategic play, rates have collapsed by 46.3% over the same period, currently averaging USD 4 150 per FEU (20 September). The latest data, released by Oslo-based Xeneta, highlights a shift in market fundamentals at what is usually a peak season for operators.
     
    Peter Sand, Xeneta’s Chief Analyst, notes that carriers will no doubt be concerned about the wider implications of the increasingly global spot trend.
     
    “This is the highest number of blanked sailings on this key trade since January and February, at a time when the industry would normally have anticipated very strong demand,” he says, adding: “It’s an aggressive strategic play by carriers, but it’s clearly not paying dividends.
     
    “The last four weeks has seen capacity falling to its lowest levels since February, with an average of 275 000 TEU leaving the Far East for the US West Coast, about 50 000 TEU less than the peak in early August. Compared to the same period in 2021, capacity is down by some 13%. That’s the equivalent of removing 21 ships of 8 000 TEU, which is the average vessel size on this trade.
     
    For now though, the trend is clear, leading to a stark supply and demand shift. According to Xeneta, for 2022 to date, capacity offered on the route is more than 600 000 TEU down year-on-year (-5.4%). The volume change is even more pronounced, with 700 000 TEU less making the journey from the Far East to the US West Coast in the first seven months of the year.
     
    “To get things into perspective,” he comments, “compared to the same period in 2019, capacity on this trade is up by 240 000 TEU, whereas demand is up by 890 000 TEU. So, relatively speaking, the trend is worrying for carriers, but the figures remain strong. That said, what has happened to ‘peak season’? It just doesn’t seem to have materialized, does it?”
     
    A positive knock-on effect of the declining capacity is the improvement in scheduled reliability for vessels on the trade. Data shows that 27.1% of ships are now sailing on schedule, an 11% improvement over this point last year. The average delay for late ships is also down, currently standing at 9.6 days.
     
    In mid-September average rates from Asia Pacific to Europe and Middle East stood at USD 5.59 per kg, a 21% fall from their peak at the start of 2022. Spot rates are now lower than contracted rates - USD 5.52 per kg versus USD 5.58 per kg – something not seen in over two years. Meanwhile, despite a load factor that is down 7% since 2022 began (now at 85%), air freight rates have risen 2.8% year-on-year.
     
    Although that figure isn’t significant in itself, it hides an overall jump of 166% against pre-COVID levels.
     
    According to the data, some 43% of the Asia Pacific to Europe and Middle East trade is now sold on the spot market – up from 34% three years ago – while on the China to Europe corridor there’s a 56% bias (here spot rates are still higher than their contracted counterparts).
     
    Oslo-based Xeneta’s software platform compiles the latest ocean and air freight rate data aggregated worldwide to deliver powerful market insights. Participating companies include ABB, Electrolux, Continental, Unilever, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
     
    Xeneta is the leading ocean and air freight rate benchmarking and market analytics 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 behavior – reporting live on market average and low/high movements for both short and long-term contracts. Xeneta’s data is comprised of over 300 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 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
17:26 Trafigura signs USD3 billion loan agreement guaranteed by the Federal Republic of Germany to secure gas supply