With declining consumer demand and rising inflation, 2023 brought new challenges for the ocean and air freight markets.
The market dynamics have shifted in favor of shippers as carriers try to protect rates while struggling with overcapacity in a weaker market.
If you are also curious whether your suppliers are offering their best rates, use Xeneta's ocean & air freight rate calculator for FREE and fight for every last dollar in upcoming negotiations.
In this month's newsletter, you will also find a sneak peek into the latest Xeneta Shipping Index (XSI®) report and the 'State of the Market' webinars.
Happy reading,
Team Xeneta
What's New?
Xeneta Shipping Index (XSI®) Contract Market | January 2023
Record-breaking fall in long-term rates for ocean freight, as carriers brace for stormy 2023
The global XSI® posted its biggest ever month-on-month drop on record in Jan 2023. It fell by 13.3% from December, down to 364.15 points, making it the fifth month in a row of falling prices on the index. With little sign of change ahead, this will be a challenging year for the carriers.
State of the Ocean Freight Market Webinar | January 2023
Are you getting the best spot or long-term deals on all your trades?
As the ocean freight market continues to weaken, join Peter Sand, chief analyst at Xeneta and Emily Stausbøll, market analyst at Xeneta, during the latest 'State of the Ocean Freight Market' webinar to learn how you manage your freight amidst ‘Capacity Management’ overload and find saving opportunities.
The box rate collapse should not have taken anyone by surprise. Maybe the timing of its fall was worth discussing, but in the scheme of economic bubbles, the question was always 'when' instead of 'if.' The carriers are trying to halt, or at least slow down, the precipitous container rate collapse by slow-steaming, canceled loops, and other sorts of capacity management. But the historic supply & demand ratio between cargo and containers now favors the shippers. Read more
Weekly Container Freight Update | Week 05, 2023
Rewarding a lower CO2 emitting carrier with your cargo allotments has never been easier for global shippers.
As per the Carbon Emissions Index (CEI), powered by Xeneta and Marine Benchmark, the CO2 emitted per ton of cargo transported between the Far East and the South American East Coast rose by 6.3% in Q4 2022 compared to the quarter before. Read more.
Top Charts
Xeneta Air Freight Update | January 2023
An uneven recovery slash rates on main fronthaul trades
As the Covid-19 pandemic slowly eases its grip on the global air freight market, an uneven recovery emerges across the top trades. Compared to pre-pandemic market conditions, the air freight rate is highly elevated (up by 72% from the 2019 level) due to higher operating costs, including labor and jet fuel costs, while both supply and demand levels are above their pre-pandemic averages. Read more.
PS: Join Xeneta air market analysts in the February State of the Air Freight Market webinar on Feb 2, 2023, as they discuss which lanes will experience the most disruptions and impact on rates. Save your spot now.
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