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  • 2023 January 19 10:57

    Freight rates from North Europe to the US East Coast fall by 10% since the start of the year - Xeneta

    2023 has marked a change in fortunes for ocean freight rates from North Europe to the US East Coast, with both spot and long-term contracted prices falling by around 10% since the start of the year, according to Xeneta's release.
    According to the latest data from Oslo’s Xeneta, long-term rates are now under USD 6 000 per FEU, while spot rates are below USD 6 500 per FEU for the first time since December 2021. Prior to the New Year this trade had withstood market forces with only “soft” rates declines, compared to the dramatic falls seen on other key ocean corridors since last summer.
    Peter Sand, Chief Analyst at Xeneta, says the reasons behind the current decline are more complex than many may imagine.
    “We are all aware of the macroeconomic forces impacting global consumer demand and international freight volumes,” he states. “That, and the easing congestion at ports, is pushing rates down across the board as carriers suddenly compete for business which, this time last year, was flooding through their doors. However, there’s additional forces at play when it comes to this US East Coast fronthaul.
    “In short, it’s a very commercially attractive route right now. When you take freight rates and average transit times into account it offers far greater revenue and thus profitability for the carriers than competing corridors. So, with the increase in blanked sailings from the Far East, and general easing of congestion, carriers have moved available capacity to this trade to take advantage. That, as we can see, is now undermining the high rates that attracted the vessels in the first place.”
    Sand points out that the North Europe to US East Coast trade continued to deliver exceptional profitability for carriers through to the end of last year. At a time when rates were nosediving elsewhere.
    He explains: “In Q4 the average transit time here was just over 20 days, delivering an average revenue per TEU per day of USD 360 per FEU for carriers. In contrast, the revenue per TEU per day from the Far East to the US West Coast was only USD 160 per FEU. So, if you have available capacity where would you look to deploy it? It’s a no-brainer: You follow the money.”
    Despite the downward pressure on rates, Sand says the market needs to keep a broader sense of perspective. He notes:
     “We shouldn’t lose sight of how historically strong prices are at present. If we look back to January 2021 rates for both spot and long-term agreements for the trans-Atlantic fronthaul averaged around USD 2 000 per FEU, roughly a third of today’s prices. That demonstrates just how high this trade has been flying… but also how much room there is for further falls.”
    Xeneta’s data also illustrates that this trade is one of very few where spot prices are still above long-term rates. An important distinction for shippers that, on competing trades, may be tendering for long-term contracts at or around today’s spot rates.
    Xeneta is the leading ocean and air freight rate benchmarking and market intelligence platform transforming the shipping and logistics industry. Xeneta’s data is comprised of over 300 million contracted container and air freight rates and covers over 160,000 global ocean trade routes and over 40,000 airport-airport connections. Xeneta is a privately held company with headquarters in Oslo, Norway and regional offices in New York and Hamburg.

2023 March 30

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18:17 NORDEN partner with Spar Shipping on use of biofuel
18:07 Belize, Japan and Portugal join the 2012 Cape Town Agreement
17:54 Transport hub for Russia’s export grain to be created in Iran
17:31 RF Government to finalize plans on development of transport corridors
17:29 NORDEN enters Capesize segment
17:23 Seaspan gets more than $2 billion in contracts to Canadian companies for the design and construction of new, large non-combat vessels
17:20 Wan Hai Lines holds ship naming ceremony for new vessel Wan Hai 331
17:15 Meyer Werft announces keel laying for Disney Treasure
17:06 Russian Federal Fisheries Agency approves expansion of Zvezda shipyard’s capacity
16:45 The combined EBIT of 12 largest shipping lines reach USD 95bn in 2022
16:26 Wartsila launches world-first radical derating solution for two-stroke engines
16:25 DP World sets new Southampton record for handling containers on ship
16:05 Hyundai GLOVIS partners with GoodFuels on first biofuel bunkering for a Korean flagged PCTC vessel
15:42 EU agrees stronger legislation to accelerate the rollout of renewable energy
15:29 TransContainer launches service for cargo traffic to China via Saint Petersburg
15:20 LR awards AiP to Hyundai Heavy Industries for its new Onboard Guidance System
15:04 SCZONE signs a framework business agreement with Suez Canal Container Terminal Company
14:57 RF Transport Ministry extends validity period of seafarers’ documents until 30 June 2023
14:32 MacGregor receives a large order for RoRo equipment for dual-fuel LNG Pure Car and Truck Carriers for Sallaum Lines
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12:58 Alfa Laval joins the Global CCS Institute
12:46 USC’s Lotos Shipyard starts cutting steel for lead container ship of Project 00108
12:22 Sergey Kulikov appointed as General Director of Russian Maritime Register of Shipping
12:01 MAN Energy Solutions’ MAN 49/60DF engine receives Type Approval
11:45 Dredging works commenced on Volga-Caspian Canal
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2023 March 29

19:28 The problem of excess stock in Russia’s Far Eastern ports is settled – Vladimir Putin
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18:06 Port of Savannah adds 55 hybrid yard cranes
17:46 ADNOC LS unveils Integrated Logistics Services Platform
17:30 Roundtable meeting “Working professions in seaports” to be held in online format on 25 April 2023
17:16 Inland ports welcome a a deal on the requirements for Alternative Fuel Infrastructure
17:03 Rosneft Oil Company and Indian Oil Company sign agreement to substantially increase oil supplies
16:49 IMO CARES project receives a further round of funding from the Kingdom of Saudi Arabia
16:31 Poseidon Acquisition acquires all of the outstanding common shares of Atlas
16:26 DP World expands offering at the Port of Berbera in Somaliland with new edible oil terminal
16:14 Fuel oil and VGO shipments from Russian ports to Singapore and Malaysia could exceed 1.1 million metric tonnes in March
15:43 Moín Container Terminal receives its third largest vessel
15:27 Russian Railways to increase Eastern Polygon capacity by 9.5% this year
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14:59 USC General Director named flammability and price of composite materials as key factors hindering their use in shipbuilding
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11:36 NYK to make Mitsubishi Ore Transport its wholly-owned subsidiary
11:12 Tianjin Port Development announces 2022 results
11:00 DP World opens one-stop refrigerated container facility in Sydney
10:56 Belarus exports its cargo via 20 Russian ports at preferential tariffs – PM Roman Golovchenko
10:45 Greek fleet shrinks for the first time since 2018