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  • 2022 September 23 12:31

    Spot rates from the Far East to US West Coast collapsed by 46.3% over last 12 weeks - Xeneta

    Carriers are fighting to shore up falling spot rates from the Far East to US West Coast, blanking some 1.5 million TEU of capacity over the last 12 weeks, according to Xeneta. However, despite this bold strategic play, rates have collapsed by 46.3% over the same period, currently averaging USD 4 150 per FEU (20 September). The latest data, released by Oslo-based Xeneta, highlights a shift in market fundamentals at what is usually a peak season for operators.
     
    Peter Sand, Xeneta’s Chief Analyst, notes that carriers will no doubt be concerned about the wider implications of the increasingly global spot trend.
     
    “This is the highest number of blanked sailings on this key trade since January and February, at a time when the industry would normally have anticipated very strong demand,” he says, adding: “It’s an aggressive strategic play by carriers, but it’s clearly not paying dividends.
     
    “The last four weeks has seen capacity falling to its lowest levels since February, with an average of 275 000 TEU leaving the Far East for the US West Coast, about 50 000 TEU less than the peak in early August. Compared to the same period in 2021, capacity is down by some 13%. That’s the equivalent of removing 21 ships of 8 000 TEU, which is the average vessel size on this trade.
     
    For now though, the trend is clear, leading to a stark supply and demand shift. According to Xeneta, for 2022 to date, capacity offered on the route is more than 600 000 TEU down year-on-year (-5.4%). The volume change is even more pronounced, with 700 000 TEU less making the journey from the Far East to the US West Coast in the first seven months of the year.
     
    “To get things into perspective,” he comments, “compared to the same period in 2019, capacity on this trade is up by 240 000 TEU, whereas demand is up by 890 000 TEU. So, relatively speaking, the trend is worrying for carriers, but the figures remain strong. That said, what has happened to ‘peak season’? It just doesn’t seem to have materialized, does it?”
     
    A positive knock-on effect of the declining capacity is the improvement in scheduled reliability for vessels on the trade. Data shows that 27.1% of ships are now sailing on schedule, an 11% improvement over this point last year. The average delay for late ships is also down, currently standing at 9.6 days.
     
    In mid-September average rates from Asia Pacific to Europe and Middle East stood at USD 5.59 per kg, a 21% fall from their peak at the start of 2022. Spot rates are now lower than contracted rates - USD 5.52 per kg versus USD 5.58 per kg – something not seen in over two years. Meanwhile, despite a load factor that is down 7% since 2022 began (now at 85%), air freight rates have risen 2.8% year-on-year.
     
    Although that figure isn’t significant in itself, it hides an overall jump of 166% against pre-COVID levels.
     
    According to the data, some 43% of the Asia Pacific to Europe and Middle East trade is now sold on the spot market – up from 34% three years ago – while on the China to Europe corridor there’s a 56% bias (here spot rates are still higher than their contracted counterparts).
     
    Oslo-based Xeneta’s 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 analytics 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 behavior – 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 30

15:14 HHLA and Fraunhofer CML start IHATEC project
15:04 LR approval in principle for Maridea’s Moray Base floating wind concept
14:48 Albania implements the IMO Anti-fouling Systems Convention
14:03 Rolls-Royce and Lürssen to focus on methanol propulsion for large yachts
13:32 Successful delivery of 1800TEU container vessel M/V “ASL HONGKONG”
13:16 DNV confirms Nordseecluster wind farms will comply with German offshore regulations
13:13 Turnover of FESCO’s Far East coastal services in 8M’2022 rose by 6%, YoY
12:53 Orsted completes divestment of 50 % of Hornsea 2 Offshore Wind Farm
12:44 Handling of Belarus’ oil products in Russian ports can total 3 million tonnes in 2022
12:21 ABS and DSME team-up on decarbonization strategy
12:01 OOCL completes trial voyage with biofuel from Chevron
11:40 Ningbo Containerized Freight Index deceases by 31.0% in September 2022
11:22 POT and EMERCOM held joint firefighting exercise on oil tanker in Saint-Petersburg
11:05 Dutch fishing vessel struck anchored product tanker, oil leak
10:37 China's first 2,000-ton offshore wind power installation platform delivered in Guangzhou - China Daily
10:33 Russia convenes emergency meeting of UN Security Council on Nord Stream 1 and Nord Stream 2 gas pipeline blasts
10:09 China ports container volume rises 4.1% in January - August 2022
09:55 Delivery of second ice-class buoy laying vessel of Project BLV03 accepted in Murmansk
09:32 Crude oil futures are slightly up after a decrease at the previous session
09:32 Brazil’s CBO Group and Wartsila sign Decarbonisation Service agreement to speed up fleet sustainability
09:21 MABUX: Bunker index may turn into downward changes on Sep 30
08:34 MABUX: Bunker Weekly Outlook, Week 39, 2022

2022 September 29

18:36 Shift Clean Energy selected to electrify 17 new tugboats
18:10 Ulstein develops 8,000t foundation installation vessel
17:50 Volgotrans files suits against Lotos shipyard for over RUB 800 million in total
17:06 Vattenfall awarded major wind power project off the coast of Germany
16:44 Krasnoye Sormovo shipyard to build three cruise ships of ‘Karelia’ design
16:34 Yinson Greentech commences construction of all-electric cargo vessel
16:18 The largest shipyard in the MENA region signs a long-term agreement with Bahri Logistics
15:56 Container shipping and logistics experts Matson joins SEA-LNG
15:04 Aker Solutions joins to the Aiming for Zero Methane Emissions Initiative
14:58 Amount of cargo transported via Bosphorus rose 40% since 2005
14:36 Hoegh Autoliners joins First Movers Coalition and commits to using green fuels already by 2030
14:25 Maritime industry unites to call for earmarking of ETS revenues
13:45 Sanmar Shipyards delivers 7th tug to SAAM Towage
13:24 Port of Cork Company launches a new 13.5-hectare container terminal
12:56 Severnaya Verf shipyard launches lead factory freezer-longliner of Project MT1112XL, Gandvik-2
12:53 China delivers first VLCC equipped with four rigid sails - The Maritime Executive
12:05 Second ship of Project 03141, Kedon, left Khabarovsk Shipyard for delivery base
11:40 Mawani signs 7 agreements during the Saudi Maritime Congress
11:03 GTT receives AiP from Bureau Veritas for the design of a LNG-fuelled & “NH3 Ready” Very Large Crude Carrier
10:23 Keppel O&M secures repeat newbuild FPSO contract worth US$2.8b from Petrobras
10:10 CPC Marine Terminal handled 382 tankers by mid-September
09:48 Long-term contracted rates fell by 1.1% in September - Xeneta
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