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1 min read

News: Long-Term Contract Data Confirms Freight Rates Decline

December 15, 2015 – Oslo, Norway - Xeneta, the leading price comparison platform for containerized freight transforming the shipping and logistics industry with big data analytics, today announced that the already negotiated long-term contracted rates for 2016 currently being uploaded into the Xeneta platform clearly demonstrates the further decline of next year’s long-term rates.

In 2015, we have seen more and more shippers having the upper hand, finally relishing in the ability to be choosers and not beggars and start winning the historical price war. They have been able to evaluate their sourcing strategy taking advantage of the current downturn, especially on the Asia – Europe trade.

Looking into 2016, long-term contracts rates are significantly lower than the past 12 months. This is based on the current 10x’s of thousands of already negotiated long-term contracts being uploaded into the Xeneta platform.

“We expect to see more of that in 2016 where our long-term rates market intelligence clearly indicates that these rates are on a clear path down, based on already contracted rates for the entire next year. We are seeing that the usual popular routes will continue this rate downfall and are already seeing further indication in the Xeneta platform for various other routes as the tender season comes to a close,” says Thomas Sørbø, CBDO, Xeneta.  

To sum up, global growth will be low, capacity will grow, volatility and the price war will continue. 2016 long-term contracts will be rock bottom making life for all carriers even more difficult than in 2015. As we continue to see 2016 long-term rates pour into the Xeneta platform, we will be able to further inform about the future health of the ocean freight industry.