Overcapacity is driving down long-term rates; how can you capitalize on this market?
The ocean freight market tables have taken a dramatic turn, with the market now in favor of shippers. Overcapacity has begun to drive down long-term freight rates, leaving shippers with the upper hand and discounted prices during bid rounds. Last month we hit a milestone in ocean freight- with a +13% month-on-month drop in the XSI (Xeneta Shipping Index) from Dec ‘22-Jan ‘23. Down 364.15 points, this was the most sizeable drop in the XSI ever recorded.
While no one knows how long these rates will last, it’s safe to say overcapacity is here to stay for the better half of 2023. As carriers grapple with how to remove enough capacity to turn things around, now is the time for shippers to capitalize on this shift in power.
Your rates might be low, but are you still leaving money on the table?
Watch the February State of the Ocean Freight Market webinar, where Xeneta analysts will discuss:
- The biggest drop on record in the XSI
- What carriers will need to do capacity/blanked sailings wise to turn things around
- Downward trending volumes and expected numbers in 2023
- Spot & long-term freight rates on top trade lanes