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  • 2022 August 19 13:21

    Xeneta real-time container rates update: Week 33

    South American spot rate gap set to narrow as shippers take advantage of lower Far East to West Coast rates

    The latest ocean freight rate data from Xeneta reveals that spot rates are currently USD 3 700 more expensive for shipping 40’ containers from the Far East to the South American East Coast, compared to the West Coast corridor. This huge gap – the norm is usually around a USD 55 East Coast premium – has opened up since 1 July. However, shippers looking to take advantage of the disparity should move quickly, Xeneta warns, as it may begin to narrow across August and September.

    Peter Sand, Chief Analyst at Xeneta, says that while the speed and scale of the rate divergence took many by surprise, it also opened up a door of opportunity for limber logistics chains.

    Rollercoaster ride
    He notes: “We started the year by seeing a significant spot rate decline on both routes, before the Far East to South America East Coast prices bucked the global trend and moved back up for two and a half months. The West Coast began to climb as well, but then dropped sharply again from July. As a result, the East Coast spot rates are only 7.9% down since the New Year, while West Coast prices have plunged 41.9%.

    “This made a lot of stakeholders sit up and take notice. But what happened? By mid-July we saw a host of major carriers launching new West Coast services to ports in Chile and Columbia, and shippers looked to take advantage of the situation. Interestingly, the effect of this is likely to push spot prices closer together again, as weaker demand on the East Coast service will see lower spot rates in coming weeks and months. So, I’d be very surprised if the gap kept growing.”

    As of 14 August, spot rates on the Far East to South America East Coast route stood at USD 11 430 per FEU (up USD 1 360 since 1 July), while those for the West Coast languished at USD 7 724 (a fall of USD 2 270 in the same period). At the start of the year, the roles were reversed, with the West Coast boasting a USD 890 per FEU premium over the East.

    Knowledge pays
    “Rates are still strikingly high compared to two years ago,” Sand continues, “when the FEU spot rate was not much over USD 1 000 for both coasts, but, seen against the context of the current red-hot market, the South American West Coast spots are something of a ‘bargain’ right now.

    “It’s rare to see a gap of this magnitude opening up on such comparable routes, so don’t expect it to stick around too long. Stay tuned to the latest market data to find what happens next, and how to get the best value in your supply chain negotiations.”

    In the first six months of 2022, 1.5% of container volumes exported from the Far East went to the South America East Coast and 1.4% to the West (Source: CTS). Container volumes from the Far East have fallen 7.1% to the East Coast and 4.3% to the West Coast in the same period.

    Oslo-based Xeneta’s unique software platform compiles the latest ocean and air freight rate data aggregated worldwide to deliver powerful market insights. Participating companies include 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.

2022 September 29

10:10 CPC Marine Terminal handled 382 tankers by mid-September
09:43 State Duma approves the bill on estimation of ship construction costs
09:19 Crude oil futures show moderate decrease after growth at previous session
08:57 MABUX: Upward changes to continue in Global Bunker market on Sep 29

2022 September 28

18:30 Georgia Ports welcomes Nissan to Brunswick
18:01 Containerships increases frequency between Germany and England
17:52 Deferment of conscription for military service during mobilisation requested for those involved in bunkering of ships
17:35 Saipem awarded two new contracts in Ivory Coast worth approximately 1 billion euro overall
17:27 Vitaly Evdokimenko appointed as President of TransContainer
17:06 Crowley awarded contract by U.S. Navy’s Military Sealift Command
16:39 RF Water Transport Workers’ trade union asks for deferment of conscription for military service
16:24 The Russian Krastvetmets visits SCZONE to establish a new facility in Sokhna zone
15:53 APM Terminals Nordics announces new Managing Director
15:35 Van Oord’s offshore installation vessel Aeolus to get a major crane upgrade
15:27 Freezing trawler Kapitan Vdovichenko is on its way to Vladivostok along Northern Sea Route
14:15 Rolls-Royce delivers mtu Hybrid PropulsionPack for mega yacht to be built by Turquoise Yachts
14:00 Rosmorport announced tender for maintenance dredging in Bechevinskaya Bay
13:54 IUMI launches new Masterclass in Cargo Insurance
13:26 LNG sales under Sakhalin 2 project to total 11.4 million tonnes in 2022
13:22 ClassNK issues AiP for ammonia bunkering vessel developed by NYK Line
12:53 VARD delivers the second of two ice-strengthened expedition vessels from VARD to Viking
12:25 Afghan Taliban sign deal for Russian oil products, gas and wheat - Reuters
11:52 Rosmorport announced tender for repair of non-self-propelled dredger Peotr Sablin
11:52 Polaris Shipping trio opts for Nippon Paint Marine hull and hold coatings
11:28 Nakhodka Ship Repair Yard launches second crab catcher for Antey Group
10:35 MSC to develop air cargo solution in response to market demand
10:27 Dry cargo carrier Volgo-Balt 203 to operate on Bronka – Kaliningrad line from October
10:03 State Duma approves in the second reading the bill on estimation of ship construction costs
09:40 RF Research Institute of Fishery and Oceanography announces tender for construction of research ship of Project TSK.550
09:19 Crude oil futures fall as API reports US crude stock growth
08:54 MABUX: Global Bunker prices may demonstrate upward changes on Sep 28

2022 September 27

18:21 Capital Cruising welcomes 100th cruise ship in Scotland this season with the arrival of the Emerald Princess
17:41 AD Ports Group’s SAFEEN Feeders signs long-term charter agreement with Saif Powertec
17:28 MOL signs 'Making Net-Zero Ammonia Possible' proposal from public-private partnership for decarbonization in which a WEF participates
17:18 Three companies conclude strategic partnership aimed at boosting ship fuel efficiency/reducing GHG emissions
16:59 Swedish Maritime Administration sends navigation warnings regarding leaks on Nord Stream 1 and 2 pipelines in the Baltic Sea
16:41 Felixstowe dock workers return to picket lines
16:13 SAFEEN Feeders and Invictus Investment sign strategic agreement to own and operate five dry-bulk vessels under a long-term contract
15:37 S.Korea's Hanwha Group to invest $1.4bln for Daewoo Shipbuilding - BusinessKorea
15:31 Universal bulk carrier Sparta starts operating on Ust-Luga - Kaliningrad line
15:13 Hoglund lands six repeat orders to supply integrated automation and control for VLECs at Jiangnan shipyard
14:24 DDW Offshore AS signs contract for “Skandi Atlantic”
13:59 Rosmorport rejects the only bid for construction of support fleet maintenance base in Ust-Luga
13:58 Signol and Clarksons partner with the ambition to reduce carbon emissions in global shipping
12:50 Freeport of Riga Authority to create single platform for digital transformation of multimodal cargo services in Latvia
11:44 Russian Railways offered 20.7-pct discount for container transportation from Far East ports
11:03 Dalian Shipbuilding holds naming ceremony for the vessel ‘T300K-100’
10:27 INPEX extends MOU on LNG supply to Indonesian domestic market
09:51 Huisman and Fred. Olsen 1848 present Floating Maintenance Solution
09:25 Crude oil futures rise after a fall at the previous session
09:13 Port of Long Beach offers funding for energy efficiency projects
08:57 MABUX: Firm downtrend to prevail in Global bunker market on Sep 27

2022 September 26

18:30 DNV lands 3-year contract in UK for safe use and conversion of pipelines to transport 100% hydrogen
18:07 Multi-million-pound rail investment at the Port of Southampton to enhance container offering
17:59 RF Government considers organization of regular ferry link with Turkey via Novorossiysk
17:51 Maersk increases its warehousing capabilities in UK and Ireland
17:35 MAN Energy Solutions and ABB to cooperate on dual-fuel electric propulsion concept for next-generation FSRUs and LNG carriers
17:25 IMO develops interim guidelines for using hydrogen and ammonia as marine fuel
17:13 TotalEnergies selected as QatarEnergy’s first partner in the North Field South LNG project
15:52 RF Transport Ministry calls on 20-pct reduction of stocking up at Far East container terminals