On average, across the six main trades out of the Far East, the spot rate has fallen by 75% since the start of the year. On the long-term side, not all of the trades have seen a fall. On average, the long-term rate has fallen only by 13% across these six main trades out of the Far East.
The largest difference between long and short-term rates can be found from the Far East to the US East Coast. At the start of the year, the long-term rates were, on average, USD 4 900 per FEU lower than what was available on the spot market. Now, long-term rates are USD 5 030 per FEU higher (+ 237%) than spot rates.
The two trades from the Far East to the US are the only two out of the six covered here with higher long-term rates at the start of December compared to the start of the year.
Long-term rates on trades bound for both coasts have risen by about 11% since the start of the year. However, the long-term rates to the US were slower to rise than other trades and only peaked in Q2 due to the late start to the tender process on these trades than elsewhere.
The trade out of the Far East to the Mediterranean has the smallest premium for long-term rates, where the average long-term rate is USD 1 900 higher than the average spot rate. This is one of only two of the major trades out of the Far East where new long-term rates are less than double the average spot rate in early December. The other being the Far East to the South American East Coast.
The 'Weekly Container Rates Update' blog analysis is derived directly from the Xeneta platform. In some instances, it may diverge from the public rates available on the XSI ®-C (Xeneta Shipping Index by Compass, xsi.xeneta.com. Both indices are based on the same Xeneta data set and data quality procedures; however, they differ in their aggregation methodologies.
Want to learn more?
Sign up today for our upcoming monthly State of the Market Webinar to stay on top of the latest market developments and learn how changing market conditions might affect your contract negotiations.
PS: Missed the LIVE session? Sign up to get the full webinar recording.