Xeneta container rates alert: shippers stunned as long-term rates surge by almost 30% in a month
July saw the container shipping industry enter uncharted water, as long-term contracted rates surged by their largest ever monthly increase, climbing by close to one third. According to the latest Long-Term XSI® Public Indices from Xeneta – which crowd sources real-time rates data from leading shippers – the global index recorded a staggering jump of 28.1%, blowing the previous record (a 11.3% rise in May 2019) out the water. The benchmark now stands 78.2% higher than in July 2020, up 76.4% in 2021 alone.
The XSI® delivers unique market intelligence to help stakeholders understand the market and get optimal value for their businesses in contract negotiations. In July it revealed unprecedented shifts, with rates in Europe leading the way. The import benchmark here spiked by a massive 49.1% driving prices to an all-time high (the spot market set the course for the jump, with Freight All Kind, FAK, rates surpassing USD 13,000 per FEU). Imports now stand a towering 120.3% up year-on-year. Exports also recorded their largest ever monthly increase, although by a more ‘modest’ 16% (up 39.8% since July 2020).
The Far East indices followed suit, with a record breaking 24.2% rise in exports (110.4% up year-on-year) while imports edged up, relatively speaking, by a still impressive 7.3% (43.2% higher than in July 2020). In the US, the XSI® revealed a 17.7% surge in imports – representing another all-time high – taking the benchmark to 61.2% above July last year. Exports also demonstrated strong gains, with an 11.1% climb (up 12% year-on-year, but 18.4% since the start of 2021).
Despite what Berglund describes as “a crazy market” he notes that the majority of Xeneta users shipping large volumes report long-term contracts are mostly being honoured by carriers. This, he says, is better than the beginning of the summer, when the fear of rolled cargoes and broken agreements was front of mind for a stressed shipper community.
Xeneta points to a glut of newbuild orders from key shipping lines scrambling to meet demand and secure market share – with, amongst others, COSCO believed to be have contracted 10 containerships, ranging from 14,092 TEU to 16,180 TEU, and Yang Ming understood to be mulling 24,000 TEU vessels.
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, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
About Xeneta
Xeneta is the leading ocean and air 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.
