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  • 2021 November 30 12:50

    Container shipping costs up by 121.2% year-on-year - Xeneta

    Long-term contracted ocean freight rates rocketed by a further 16.3% over the course of November, consolidating recent gains to leave container shipping costs up 121.2% year-on-year, according to Xeneta's release. The latest developments, revealed in the Xeneta Shipping Index (XSI®) Public Indices, stand as the second largest monthly rates rise on record, following a 28.1% jump in July this year, with all major shipping corridors experiencing significant growth. Leading carriers are, as a result, reaping breath-taking financial rewards.
    “When will it end?” comments Patrik Berglund, CEO of Oslo-based Xeneta. “Shippers hoping for some much-needed rates relief have been left punch-drunk by another round of hefty blows to bottom line costs. The continued perfect storm of high demand, maxed-out capacity, port congestion, changing consumer habits, and general supply chain disruption is fuelling a rates explosion that, quite frankly, we’ve never seen the like of.
    “What’s more, it’s difficult to see a change of course ahead, with the fundamentals stacked very much in favour of the carrier community. In short, they’ve never had it so good, while many shippers, unfortunately, are well and truly on the ropes.”
    In a stunning demonstration of this current reality, carriers released a glut of jaw dropping results over November. French giant CMA CGM posted a Q3 net profit of USD 5.6bn, with consolidated revenue climbing 89% year-on-year. Meanwhile, Cosco Shipping Holdings saw its net profit surge by a staggering 1651% over the first nine months of 2021, driven by increased volumes and higher freight rates. Revenues grew by 117.5% to USD 33.24bn.
    Israeli line Zim also displayed its strength with a threefold year-on-year rise in revenues and an EBITDA of USD 2.08bn (against USD 262m in Q3 2020). The improvement was facilitated by a 174% increase in average revenue per TEU.
    “With contracts continuing to be secured at high rates, and no sign of dropping demand, the carriers are understandably bullish,” comments Berglund. “Many have announced, or are already well underway with, fleet expansion initiatives and plans for new routes, so it’ll be interesting to see how this impacts on a complex rates picture. Market intelligence, like that provided through the XSI®, will help stakeholders keep up to speed with developments and secure value in tough negotiations. That knowledge is an absolute necessity right now.”
    Xeneta’s XSI®, which is compiled from the very latest crowd-sourced ocean freight rate data from leading shippers, details significant gains across every single regional benchmark through November. In Europe, imports climbed by 9.1%, with the index now 143.3% up year-on-year, while exports jumped 23.7%, the largest monthly increase on record (and 85% up against last November).
    The Far East saw similarly strong gains on both import and export benchmarks, with the previous up by 14.6% and the latter 14.5% (year-on-year hikes of 65.5% and 163.3% respectively). In the US the picture was even more pronounced for imports, which rocketed by 39.3% in November (up 122.4% compared to the equivalent period of 2020), while exports climbed by a healthy 9% (26.2% up year-on-year).
    “2021 will be a year to remember for carriers and one to forget, if that’s possible, for the shipper community,” concludes Berglund. “What lies ahead is unclear, but we can see there’s action planned to try and ease congestion at major US ports – with the Federal Maritime Commission (FMC) announcing the launch of six supply chain innovation teams – while newbuilds, potential new players and the growing trend of shippers chartering their own vessels might affect the current, stressed supply and logistics chains.
    “Only time will tell, but for now it’s difficult to rule out further rates gains in the coming months. How big they will be is up for debate… and that’s why we’d recommend everyone to tap into the latest insights and intelligence to try and assert a level of flexibility and control in this unpredictable market.”
    Xeneta’s XSI® is compiled from the very latest crowd-sourced ocean freight rate data aggregated worldwide. Companies participating in the benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
    About Xeneta

    Xeneta is the leading ocean and air 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.

2022 January 26

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2022 January 25

18:10 Ports of Los Angeles & Long Beach postpone Container Excess Dwell Fee
17:55 Joint Russian-Chinese naval exercise Peaceful Sea-2022 took place in the Arabian Sea
17:36 Broad scope of Wärtsilä power solutions selected for gas-fuelled ferry trio
17:26 ICTSI's Cavite Gateway Terminal beefs up operations
17:04 BLRT Grupp is constructing a unique floating exhibition centre for Norway
16:45 Port of Los Angeles launches first-of-its-kind cyber resilience center
16:25 IDFA, Port of Los Angeles, and CMA CGM form joint initiative to advance U.S. dairy exports
15:52 MOL announces the world's first successful sea trial of autonomous sailing on a commercial container ship voyage
15:13 Damen commissions Rolls-Royce business unit to supply automation solutions for German Navy’s F126 frigates
15:02 Valenciaport and COSCO collaborate in the automation of the delivery of container seals
14:41 Flag-raising ceremony held on Sibir, first serial nuclear-powered icebreaker of Project 22220
14:02 7.6 million tonnes of goods handled in record quantities at the Port of Kiel
13:36 Glavgosexpertiza approves installation of NSR maritime distress safety system at “Dickson” station
13:12 European shipowners support EU parliamentary proposal on commercial operators and a sector-dedicated fund
12:54 Damen signs up ERMA FIRST to supply world’s smallest Ballast Water Treatment System
12:30 TotalEnergies launches Port of Marseille Fos’ first ship-to-containership LNG bunkering operation
12:11 OOCL posts results for 2021
11:24 RF Accounts Chamber found Russian IWW potential not to be used in full
11:00 European Parliament proposed amendments to EU ETS put Green Deal goals at risk, says World Shipping Council
10:17 Saimaa Canal Commission grants permit to Transport Infrastructure Agency for construction in Saimaa Canal lease area
09:43 Baltic Dry Index as of January 24
09:28 Crude oil prices continue moderate increase
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2022 January 24

18:22 Nakilat takes delivery and management of fourth LNG carrier newbuild
18:09 CMA CGM and TotalEnergies launch Port of Marseille Fos’ first ship-to-containership LNG bunkering operation
17:55 Detachment of RF Navy’s Baltic Fleet went to sea to fulfill tasks of long-distance campaign
17:32 Raiffeisenbank opens USD 20 million credit facility for Sea Port of Saint-Petersburg
17:13 GTMaritime guide sets out future of maritime communications
16:50 Glavgosexpertiza approves construction of coal terminal Port “Vera” in Primorye
16:29 Salus Technical introduces its the cloud-based software Bowtie Master
15:58 Tersan shipyard lays down trawler for Magadan based fishing company Tikhrybkom
15:11 Wärtsilä hits methanol milestone with first newbuild engine order
14:30 Sea Port of Saint-Petersburg to take delivery of over 40 units of handling equipment and one 63-tonne crane in 2022
14:01 Dogger Bank announces supplier events for O&M phase
13:44 BW Offshore signed an agreement for the sale of the FPSO BW Joko Tole
13:21 Loko-Bank shareholder increased his share in FESCO to 26.52%
13:07 Royal Dutch Shell plc changes its name to Shell plc
12:44 FESCO increases number of transit container trains from CPV almost twice in 2021
12:23 EdgeTech rolls out the 6205s2 Swath Bathymetry & Side Scan Sonar System
12:18 PGS secures Northern Lights CO2 storage acquisition contract
11:52 Maersk Drilling secures 21-month contract with TotalEnergies
11:17 Second episode of a creative multimedia project named The Ecologist was launched in cooperation with Van Oord
10:49 Heerema announces contract with McDermott for Saudi Aramco’s Marjan Increment Program
10:42 Eastern Shipbuilding completes major infrastructure improvement project to support OPC program
09:28 Crude oil prices rise as demand increases
09:11 Baltic Dry Index as of January 21
08:37 MABUX: No firm trend on Global bunker market on Jan 24

2022 January 23

14:29 Record figures in Polish ports
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2022 January 22

14:06 Crowley names Marcus Jadotte as Senior VP, Government Relations