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6 min read  | Market Observations

85% of Xeneta Customers Anticipate a Decrease in Ocean Freight Spend in 2023

Molly Van Deursen  | November 28, 2022

We recently had the opportunity to welcome over 300 Xeneta customers and partners during the annual Xeneta Summit held on November 9-10 in Hamburg, Germany. During the Summit, participants gained insight into factors that might affect the upcoming tender season and discussed sustainability in the shipping industry.

Our November Customer Webinar, hosted by Patrik Berglund, Xeneta CEO and Co-Founder and Michael Braun, VP of Customer Solutions at Xeneta, reviewed the Summit and revealed customer sentiment on ocean freight volumes, spend for the upcoming year and contract re-negotiation status

With inconsistencies in the current spot market and recession predictions influencing consumer demand, shippers and carriers are adjusting their expectations to be more aligned with a challenging market. Here are few key takeaways from our latest customer-exclusive webinar:

Key Highlights | Xeneta Customers Say

  • 3% of customers anticipate Ocean Freight Spend in 2023 will stay stable/consistent with 2022 
  • 45% of customers anticipate a decrease in Ocean Freight Spend in 2023 
  • 42% of customers anticipate Ocean Freight Volumes in 2023 to remain stable/consistent with 2022 
  • 46% of customers are pushing through with a scheduled RFQ to get new rates 

2022 saw a decrease in volumes but an improvement in schedule reliability.

When asked how they expect ocean freight volumes to compare in 2023: 

  • 42% of Xeneta customers said they expect 2023 ocean volumes to stay consistent with volumes of 2022 
  • 39% of Xeneta customers said they expect 2023 ocean volumes to decrease by 10% or more 
  • 6% of Xeneta customers said they expect 2023 ocean volumes to increase by 30% or more 
  • 6% of Xeneta customers said they expect 2023 ocean volumes to increase by 10% or more 
  • 6% of Xeneta customers said they expect 2023 ocean volumes to decrease by 30% or more 

Xeneta customers say (13)In response to volume predictions for the coming year, when asked to describe their current contract situation:  

  • 46% of customers said they’re pushing through with a scheduled RFQ to get new rates  
  • 39% of customers said they’re renegotiation their current long-term contracts or are planning to in the coming tender season  
  • 22% of customers said they’re moving as much volume as possible to the short-term market 
  • 11% of customers said they were in a unique position compared to the options listed in the survey poll
  • 4% of customers said they’re staying on current long-term contracts 

Xeneta customers say (12)With the majority of Xeneta customers continuing plans for a scheduled RFQ to receive new rates or renegotiating current long-term contracts, Michael and Patrik emphasized the pressure which is being put on carriers. The customer consensus reveals that shippers are trying to materialize savings as soon as possible. 

Some trade lanes are more volatile than others, consistent with recession predictions

When asked how customers expect 2023 ocean freight spend to compare to that of 2022, the consensus was: 

  • 45% of customers expect ocean freight spend to decrease by 30% or more 
  • 40% of customers expect ocean freight spend to decrease by 10% or more 
  • 8% of customers expect ocean freight spend to increase by 10% or more 
  • 5% of customers expect ocean freight spend to increase by 30% or more 
  • 3% of customers expect ocean freight spend to stay stable/consistent with 2022 

Xeneta customers say (11)An overwhelming majority of 85% of Xeneta Customers expect a decrease in freight spend by at least 10%. In line with the conversation of the webinar, this was to be expected, with volume and rate reductions anticipated. Michael explained the difference in the percentage of decrease to likely be due to which trade lane. 

Want to learn more?

Xeneta customers get access to monthly market commentary during the Ocean Freight Market Pulse Webinars. Learn more about the Xeneta platform and how to become a customer now. 

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