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With spot rates plummeting since the summer across key trading corridors, such as the Far East to US West Coast, long-term rates are now also trying to catch up. In addition, there is no sign of peak season this year as demand drops amidst the continuous threat of looming recession and geopolitical events.
Don't wait to prepare for what 2023 might have in store for the global supply chain industry. Join our November State of the Ocean Freight Market webinar on November 16, 2022, where Xeneta experts will discuss 2023 rates and trends outlook to help you strengthen your market position.
Note: Xeneta customers are invited to join the upcoming exclusive customer session. To learn more, please visit your 'Xeneta Customer Hub.'
Market Developments So far...
The latest Xeneta Shipping Index (XSI®) revealed significant drops in long-term contracted rates emerging on selected, major routes, such as from the Far East into Europe.
Although they have yet to match the scale of the decline in the spot rate, newly contracted long-term rates from the Far East to the Mediterranean have dropped by 30% since the end of September, also falling by 12.4% into Northern European ports.
"Even on the routes where we're seeing robust long-term rates, such as the US East Coast, there's a question of whether anyone approaching next year's tenders will agree to them when spot rates are so much lower. What we may well see is shippers looking to transfer volumes to the spot market, spooking carriers desperate to tie in business. The result? Carriers could be forced to lower those coveted contracted rates," noted Xeneta CEO Patrik Berglund.
The reefer rates on the eastbound transpacific trade are holding up better than their dry counterparts, increasing the attractiveness of reefer containers to carriers.
Among other major global ocean freight market trends, demand from the broader Indian subcontinent to the US East Coast stood out as it grew strongly in the first eight months of the year. According to CTS, volumes are up by 10.1% from the first eight months of last year, yet another trade contributing to record-high imports through the US East Coast.
Also, Xeneta experts suggest that we might witness some challenges internationally as well as on Intra-Asia trades this winter due to the continuation of the zero-Covid policy after Xi Jinping's re-election as the country's general secretary.
So how will these market movements across major trade lanes impact your future procurement strategy? And what learnings can you take from this year to strengthen your market position in 2023?
Join us for our monthly flagship webinar, where Xeneta experts will dive into pressing current events, analyze the state of the ocean freight market, and review container rate movements on the main trade corridors.
How will high capacity (with easing congestion & new builds) impact rates?
Navigating a looming recession and sliding demand
Meet the Speakers:
Peter Sand, Chief Analyst, Xeneta
Emily Stausbøll, Market Analyst, Xeneta
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Note:Xeneta customers are invited to join the upcoming exclusive customer session. To learn more, please visit your 'Xeneta Customer Hub.'
If you can't attend the live webinar, don't worry. Simply sign up, and we'll send you the recording after the webinar is completed. Please send us any questions you would like to see answered by our experts at email@example.com.