Did you miss the latest news in the shipping industry? Don't worry, we have got you covered. Learn what Xeneta experts have to say about the future of the ocean and air freight market amidst these recent events that can potentially impact your future negotiations with your suppliers.
Warning to Shippers: Don't Tear up Contracts to Rush Into a Tempting Spot Market | The Loadstar
Xeneta’s ocean shipping contract rate index jumped by 10% in June, but further big monthly increases seem unlikely as container spot rates head south and shippers have more supply options.The increase in the freight rate benchmarking firm’s XSI crowd-sourced index followed a 30% leap in May, meaning the index now stands 170% higher than a year ago.
“After last month’s colossal rise, we see another hike of 10%, pushing cargo owners to the limits, while the carriers fill their pockets,” said Xeneta CEO Patrik Berglund.
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Box-ships and What Happens as the Sector Unwinds | Splash 247
With many analysts suggesting container shipping’s incredible, record-breaking run has passed its peak, it’s not just shippers who are looking at their long-term contracts with the carriers. In previous downturns many tonnage providers have been left high and dry as carriers claimed insolvency risks in shredding their agreed charter deals. This time, however, liners are cash-rich with most container shipping experts contacted by Splash Extra expecting the lines to see out their contracts even in the event of a severe drop in freight rates.
“We are indeed at a turning point in the market,” Peter Sand, chief analyst at freight rate benchmarking platform Xeneta, told Splash Extra. However, Sand said the key difference this time compared to previous turns in the cycle is simple: “Liners are loaded with cash. No one is at the brink of bankruptcy.”
Read full story here.
Asia - US Container Shipping Rates are Flashing Two Bear-ish Signals | Freight Waves
Xeneta tracks data on both contract rates and spot rates. China-U.S. West Coast spot rates have been below contract rates since June 4, according to Peter Sand, Xeneta’s chief analyst.
As of Tuesday, Xeneta assessed average short-term rates on the China-West Coast route at $7,768 per FEU, 3% below average long-term rates of $7,981 per FEU.
According to Sand, “What we’ve seen over the last year is strong growth for both sets of rates, but really spectacular gains for contracted agreements. That has led the gap between the two to diminish and, with supply chains bursting at the seams and shippers looking to manage risk as much as possible, the demand for spot deals has fallen slightly on this trade, bringing prices down."
Read more here.
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