Sponsored By

Signs that container rates are slowing

Container shipping consultancy Xeneta says that although global spot rates are rising further, the pace of the increase has slowed from the increases seen in May and early June.

Nick Savvides, Europe correspondent

June 17, 2024

2 Min Read
An overhead shot of containerships in port
Photo: AdobeStock

According to Xeneta, average spot rates from the Far East to US West Coast are set to increase by 4.8% on 15 June, to stand at $6,178/feu, compared to 1 June when rates on the same trade increased by 20%.

While spot rates to the US East Coast from Asia are set to increase 3.9% on 15 June, rising to $7,114/feu, “a far less dramatic jump than when rates increased by 15% on 1 June,” said Xeneta.

Peter Sand, Xeneta Chief Analyst, said: “Any sign of a slowing in the growth of spot rates will be welcomed by shippers, but this remains an extremely challenging situation and it is likely to remain so.”

Rates on the Asia to Europe trades are seeing a similar trend, rising 10% on 15 June to $6,357/feu, less than the 20% jump on 1 June. Average spot rates to the Mediterranean are set to increase 7.2% on 1 June to $7,048/feu, a significant decrease in the rate of increase of 19% on 1 June.

“The market is still rising and some shippers are still facing the prospect of not being able to ship containers on existing long term contracts and having their cargo rolled,” said Sand.
He added: “Compared to mid-December last year before the outbreak of conflict in the Red Sea, average spot rates from the Far East are up 276% into the US West Coast and 316% into North Europe – these are huge financial hits for shippers to absorb.”

Related:Early birds hit by spot rate boom

These massive increases in the spot rates to the major consuming regions are raising the spectre of a return of rising inflation in the regions, although Sand considers it unlikely, “though not impossible” that rates will reach the high levels seen during the pandemic.

He said that the rate horizon could alter dramatically if there is a ceasefire between Israel and Hamas.
 

About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like