• 2021 April 29 10:05

    Xeneta container rates alert: shippers on the ropes as long-term contracted rates hit highs and Ever Given chaos continues

    Long-term contracted ocean freight rates are continuing their dizzying ascent, with a 4.1% climb in April leaving container shipping costs up 21.1% year-on-year, with a rise of 23.5% since December 2020. According to the latest market intelligence from Xeneta’s XSI® Public Indices report for the long-term contract market, prices escalated across all major global trade corridors in April, with no immediate relief for shippers in sight. On the contrary, the fallout from Ever Given’s Suez Canal blockage has added further pressure to supply chains already stretched by lack of capacity, equipment shortage, port congestion, and the continued ramifications of coronavirus.
     
    Xeneta’s XSI® crowd sources the very latest long-term contracted rates from leading shippers and freight forwarders, utilizing over 280 million data points, with more than 160,000 port-to-port pairings, to deliver real-time rates insights every month. A short-term XSI®, mapping fluctuating short-term rates, launched to the market last week.
     
    “It’s been another incredible month, in a unique year, for the container shipping segment,” comments Xeneta CEO Patrik Berglund. “In the US we continue to see severe delays and bottlenecks, with strong demand – driven in part by changing e-commerce habits – driving rate development. Some shippers are reportedly paying double the contracted rates they enjoyed just one year ago.
     
    “Meanwhile, in Europe, the Suez Canal incident has created a backlog that has seen ports overwhelmed with cargo, while sailing schedules have suffered a ‘domino effect’ disruption. Here we can expect to see implications stretching well into May, and even June. Furthermore, shippers with cargoes on the affected ships have had initial delays to goods exacerbated by carriers dumping containers wherever they can in a rush to load available empty containers and get back on track. This means a rash of consignments are stranded in the wrong locations with no plans to rescue them. Seen as a whole the situation leaves carriers in a position of supreme strength, essentially able to pick and choose assignments and customers, and does not bode well for shippers desperate for much-needed rates relief.”
     
    There was, Berglund points out, anything but relief in April. All trade corridors on the long-term XSI® showed indicators pointing relentlessly upwards. In Europe the imports benchmark continued towards the stratosphere, climbing by 5.4% month-on-month to end 43% up against April 2020, and a huge 47.7% up since the start of 2021. Exports increased by 2.3%, showing a more modest 7.3% year-on-year gain.
     
    Far East imports edged up 0.2%, some 15.7% up against the same period last year, while exports showed more marked improvement - appreciating a further 5.3% month-on-month to stand 43.9% up against April 2020 (39.4% since the beginning of the year). Both US benchmarks also showed positive development, with imports climbing 3.5% (up 3.8% year-on-year) and exports rising 3.3%. However, this final figure is the market anomaly, remaining 5.7% down against April last year, even though this year has seen an overall climb of 5.6%.
     
    In addition to this current snapshot, Xeneta also cautions that the short-term XSI® is now showing increases on trans-Atlantic trade lanes, suggesting further long-term rates pain for shippers may lie ahead.
     
    “It’s undoubtedly excellent news for carriers,” adds Berglund, “and we continue to see the manifestation of that in company financials. For example, OOCL has revealed revenues of USD 3billion for the first quarter, a staggering 96% higher than this time last year, driven by both higher volumes (up 28.3%) and significantly higher revenues per container, up 58.3%. This comes on the back of last month’s sensational results from Maersk, CMA CGM, and Hapag-Lloyd, amongst others.
     
    “It’s also worth noting pro-active strategies from some players to make the most of market opportunity. Here we can again reference Hapag-Lloyd, which has announced a EURO 550million investment in new containers – one of the industry’s largest ever orders. In an environment where equipment is in short supply, this is an ambitious move to shorten turnaround times, improve service and secure added market share.”
     
    Berglund concludes that it is difficult to see any short- to medium-term decline in rates in a segment that is currently “in overdrive”.
     
    “Negotiations are difficult,” he says, “so it’s important to keep abreast of the latest intelligence and maintain a limber strategy to make the most of opportunity, wherever it arises. That’s really the key to all stakeholders getting the maximum value for their business in such a competitive, dynamic and always exciting marketplace.”
     
    Companies participating in Oslo-based Xeneta’s crowd-sourced ocean and air freight rate benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Lenovo, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
     
    About Xeneta

    Xeneta is the leading ocean freight rate benchmarking and market intelligence platform transforming the shipping and logistics industry. Xeneta’s powerful reporting and analytics platform provides liner-shipping stakeholders the data they need to understand current and historical market behaviour – reporting live on market average and low/high movements for both short and long-term contracts. Xeneta’s data is comprised of over 280 million contracted container and air freight rates and covers over 160,000 global trade routes. Xeneta is a privately held company with headquarters in Oslo, Norway and regional offices in New York and Hamburg.




2021 June 14

17:46 Fincantieri and MSC celebrate the start of construction of “Explora I”,
15:52 ABS and 22 industry players to study ammonia as an alternative marine fuel
15:18 ICS Guidance for Ship Operators and Roadmap for vaccination of seafarers
14:09 Bollinger submits proposal for U.S. Coast Guard Heritage-class offshore patrol cutter
13:19 Genco to jointly study ammonia as an alternative marine fuel
12:31 Wärtsilä brings Power-to-X technology to World Expo
11:57 Trafigura joins cross industry study into the adoption of green ammonia as an alternative marine fuel
11:24 DFDS: Freight up 31% following lockdowns in 2020
10:32 SEACOR Marine announces debt payoff agreement
09:47 Kick off “Joint Study” framework for studying ammonia as an alternative marine fuel
09:13 MABUX: bunker indexes may change irregularly on June 14

2021 June 13

15:31 Petrobras signs contract for the supply of eighth Búzios unit
14:18 Lyon Shipyard to invest $24.4 million to expand its operation in the City of Norfolk
13:29 Shearwater GeoServices recycles Western Trident as part of its fleet renewal strategy
12:41 MCA to carry out unannounced inspections of fishing vessels
11:42 The 126-passenger expedition cruise vessel National Geographic Resolution hits the water
10:56 Saipem: Inauguration of Saipem Guyana offshore construction facility in Georgetown

2021 June 12

16:09 Fred. Olsen Cruise Lines unveils brand new sailings aboard new ships Bolette and Borealis in 2022
14:21 "Blowdown" to reduce risk and raise decommissioning progress
13:42 Roambee announces a strategic investment from and partnership with PSA unboXed
13:19 Belfast Harbour awards £25,000 to community projects
12:41 Maurice GEORGES named as new Chair of the Executive Board of Dunkerque-Port
11:38 AIDA Cruises resumes holiday voyages from July 29, 2021
10:52 OptiLink: A digital revolution in ballast water management

2021 June 11

18:07 LNG consumption as a marine fuel has almost doubled in 2020
17:31 Hapag-Lloyd to provide full transparency on vessel arrivals
17:09 MOL joins international think tank and accelerate development for carbon capture, utilization and storage
16:58 GTT obtains tank design order for two new LNG carriers from Samsung Heavy Industries
16:52 Shipping industry welcomes Nigeria’s creation of ‘Deep Blue’ to stamp out piracy in the Gulf of Guinea
16:24 Stena Line will move its Europoort-Killingholme service to Immingham
16:00 Yantar shipyard to build rescue ship of Project MPSV06M for Marine Recue Service
15:36 Sea Port of Saint-Petersburg hosts introductory practical training for students
15:13 The Port of Rotterdam Authority, Customs, Fresh Produce Centre and Portbase join forces to facilitate the growth market of refrigerated products
14:25 Seanergy takes delivery of two Capesize vessels with prompt commencement of period charters
13:51 Total throughput at the ports of Bremen increases once again during Q1 4 June 2021
13:32 Roman Gorgutsa appointed as General Director of Morstroytechnology
13:28 Mitsui E&S Machinery and 22 industry players kick off studying ammonia as an alternative marine fuel
13:04 MOL and ACSL use flying drone to conduct autonomous inspection of vessel holds under non GNSS and dark environment
12:49 Port of Los Angeles becames the first port in the Western Hemisphere to process 10 million container units in a 12‑month period
12:38 Oboronlogistics receives RS certificate on safety management of cargo ship Sparta
12:14 CNES and CMA CGM sign unique partnership agreement to spawn innovative solutions for shipping, logistics and the space industry
12:01 APM Terminals continues roll-out of digital export processing at Russian terminals
11:57 Russian Railways: Loading of export cargo bound for domestic ports grew by 8% in 5M’21
11:34 RS and GTT sign new cooperation agreement
11:33 Xeneta selects CLIVE Data Services’ ‘dynamic loadfactor’ data and analyses to deliver complete air cargo market intelligence
11:11 Stagnation in R&D investment creating unacceptable risk for industry zero emissions future - ICS
10:50 Throughput of port Riga (Latvia) in 5M’2021 dropped by 15.1%
10:29 Rosneft agrees heads of terms to sell a stake in the Vostok Oil Project to a consortium of Vitol and Mercantile & Maritime
10:08 DRAX and Mitsubishi Heavy Industries sign pioneering deal towards delivery of the world’s largest negative emissions project
09:52 Throughput of Russian seaports in 5M’2021 fell by 2.7% Y-o-Y
09:40 Oil prices continue decreasing
09:23 Baltic Dry Index as of June 10
09:16 MABUX: Global bunker prices may rise slightly on June 11.
09:04 The port of Rotterdam Authority intends to build brand new port information centre
08:02 Rolls-Royce to showcase future South Korean naval power and propulsion

2021 June 10

18:45 Equinor sells its refining business in Denmark to Klesch
18:25 Rolls-Royce builds new fuel cell demonstrator to ensure electricity supplies
18:05 DNV predicts that marine finfish production in deeper waters offshore will take a 13% market share in 2050
18:00 Comprehensive programme on development of Yamal resource potential to be developed by October 2021
17:51 Contract awards for PSVs in UK