As container lines fail to support falling spot rates in the second half of 2022, next year could bring an all-out price war as contract rates follow spot rates down.
As container shipping spot rates drop to close to 2019 levels on some major trades it does not bode well for carriers renegotiating long-term contracts in the coming months.
The Xeneta Shipping Index (XSI) has fallen more sharply in November than at any time since it was launched in 2019 plunging by 5.7%.
Containers spot freight rates on the Asia – Europe trade have continued to crumble over the last week.
A million teu of container line capacity may lay idle in 2023 as demand drops, freight rates fall, and economic confidence worsens.
Spot container shipping freight rates fell sharply again over the last week dropping a further 9% driven down by the Asia – Europe trade.
