Heads up shippers. There is no rest. Xeneta reports December 2020 China-Europe spot rates coming into the platform indicate levels of approximately USD 2100 per TEU and above (up 50%+ from end of November).
The sky-high prices combined with full ships, record demand and lack of equipment have been a common problem on the trans-Pacific eastbound for the past few months. The same issues are now observed also on the China to Europe trade. With no material change on the supply and demand components, we expect these prices to be sticky for the remainder of the year/peak season and possibly well into the new year.
What happens after Chinese New Year is now anybody's bet. We are also monitoring the contracted rates and whether the current disruption will result in higher prices also for longer term commitments. Currently, it seems that both shippers and carriers are reluctant to sign major volumes with long-term commitments due to the market uncertainty and prefer to kick the can down the road.
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