According to the latest crowd-sourced data from Xeneta, long-term rates for reefer containers on the key US West Coast to Far East route soared almost 60% in April.
The Oslo-based ocean and air freight benchmarking specialist reveals a surge in rates of around USD 2000 per 40’ unit after the latest 12-month contracts came to a close.
The average contracted rate recorded on 15 May stood at USD 5850 per container, while the average for new agreements running from Q2 2022 to the end of Q1 2023 was even higher, at USD 5945 per 40’ reefer.
Current spot rates on the corridor are predominantly flat, at USD 5050 (14 May), equating to almost USD 900 lower than the average for long-term contracts from the past three months.
Xeneta’s analysis shows that spot rates have never reached the current heights of long-term costs, creating opportunity for shippers limber enough to refine strategies ‘on the run’.
Both long- and short-term pricing sits considerably higher for reefers than dry containers, with the former USD 4300 more expensive for long-term contracts, while spot prices command a USD 3 850 reefer premium as of 14 May. To put this into a broader market perspective, this time last year the difference between dry and reefer containers was USD 2500 on both the long- and short-term market.
Xeneta’s platform compiles the latest ocean and air freight rate data aggregated worldwide to deliver unique market insights. 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.
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 300 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.