May saw the highest ever monthly increase in long-term contracted ocean freight rates, as the cost of locking in container shipments soared by 30.1%.
The unprecedented hike, revealed in the latest Xeneta Shipping Index (XSI®) Public Indices for the contract market, means that long-term rates are now 150.6% up year-on-year. In 2022 alone, costs have climbed by 55%.
“This is a staggering development,” comments Xeneta CEO Patrik Berglund.
“Just last month we were looking at an 11% rise and questioning how such continued gains were possible. Now we see a monthly increase of almost a third blowing the previous XSI® records out of the water. The breathtaking gains reflect the sharp increase of the average of all valid long-term contracts as the older contracts with lower rates expire, and are replaced by the newer contracts with much higher rates. It’s a worrying time to be a shipper…and halcyon days for the carrier community, even as the market has started showing signs of slowing down."
XSI® - US Imports/Exports
US imports on the XSI ® skyrocketed by 65.1% in May to 464.09 points, its highest ever level as only very few shippers are still enjoying rates that would have been considered ‘normal’ a few years ago. With this latest rise, the benchmark is now 205.4% higher than this time last year and has risen by 95.9% since the end of 2021.
XSI® - Europe Imports/Exports
European imports on the XSI ® continued to reach fresh all-time highs after increasing by 11.3% to 379.13 points. Year-on-year the index is now up by 122.0% and had risen by 39.7% since Dec-21. Exports also rose in May, jumping by 27.6% to 333.91.
XSI - Far East Imports/Exports
Far East imports on the XSI ® jumped by 17.4% in May-22 to 207.99. This represents one of the largest month-on-month increases on record and takes the index to 57.1% higher than in May-21, as older contracts with lower rates have now almost entirely been replaced by the new round of contracts with much higher rates. Since the end of last year, the index has risen by 26.9%.
Note: Xeneta's XSI® is compiled from the very latest crowd-sourced ocean freight rate data aggregated worldwide. Companies participating in the benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Nestle, L'Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
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