May GRIs See Ocean Freight Spot Rates Jump (FEA - N.Europe) With Long-Term Rates Declining in Q2

Unless you have been hiding, the shipping trade news has been buzzing with the anticipated May (and later on as well) GRIs.

Like the SCFI (Shanghai Containerized Freight Index) the Xeneta platform clearly indicated the 40' short-term rates for the Far East Asia - North Europe main ports corridor increased 69% on the market average price from April 1 - May 1.

The market average on April 1 for 40' containers was at $805 and market low at $452. While May 1 saw an increase of the market average price to $1364 and a market low price of $900. The market low price saw a whopping increase of 99% from April 1 to May 1.

Figure 1: Short-term contracts | 40' container | April 1, 2016 - May 1, 2016 | Far East Asia - N. Europe

Long-Term Contracts Rates Decrease

On the other side, long-term contracts saw a slight decrease. 

The Xeneta platform indicates that from January 1, 2016 - May 1, 2016 the market average price dropped from $1182 to $944 and the market low price dropped from $583 to $465, bringing down both the market average and the lower end with 20%. 

Figure 1: Long-term contracts | 40' container | January 1, 2016 - May 1, 2016 | Far East Asia - N. Europe 

Data already in the Xeneta platform for long-term rates for this corridor indicates that Q3, July, will see an increase in long-term rates of about 10% from today. 

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