• 2023 February 1 12:13

    Long-term ocean freight rates drop by 13.3% in January - Xeneta

    January proved to be a dramatic month for long-term ocean freight rates, with the latest data from the Xeneta Shipping Index (XSI) showing the largest ever month-on-month declines. According to the XSI, which is based on crowd-sourced data from leading shippers worldwide, average long-term contracted rates dropped by 13.3% in January. This is now the fifth month in a row of falling prices on the index, with, Xeneta warns, little sign of change ahead in what looks set to be a challenging year for carriers.
     
    January’s decline marks a significant change in tempo from December’s 0.1% dip in prices, but, as Xeneta CEO Patrik Berglund explains, it wasn’t entirely unexpected.
     
    Berglund notes that May last year saw the XSI’s largest monthly increase in a ‘super-hot’ market, with a climb of 30.1%. US import rates soared a staggering 65%. With contracts negotiated then set to expire at the end of April, upcoming falls could again rewrite the record books.
     
    All six of the XSI’s regional sub-indexes posted drops in January, some of which are the largest on record.
     
    January’s largest fall was recorded on the Far East export subindex, with this major fronthaul corridor losing 18.1% of its value (41% up year-on-year). The backhaul proved more resilient, posting a 3.2% fall on the import benchmark – although this is still the sub-index with the smallest year-on-year increase, up 25.7%.
     
    In Europe, the import benchmark saw a 9.6% drop, with Xeneta notes, some even larger declines associated with the trade from the Far East. The average valid long-term rate from the Far East to North Europe fell by 17%, with those from the Far East to the Mediterranean slipping by 15%. However, despite these sharp falls the previous strength of the market means rates remain 40.9% up year-on-year. The XSI for exports also sits strong, despite a 5.2% fall this month, up a commanding 83% against January 2022.
     
    The story is similar in the US across January, with the import subindex declining 15.8% from December. The export benchmark performed better in the soft market, with “only” a 1.3% month-on-month drop.
     
    “From a short-term perspective these figures are steeped in a sense of doom and gloom for the carrier community, but that’s far from the whole story,” Berglund concludes. “If we look back to this time last year, the Global XSI is currently a remarkable 52.7% up. But if we cast our vision a little further back still – to January 2020, before the pandemic – then we can see an increase for long-term contract rates of a genuinely staggering 216.4%. I don’t think anyone could have predicted that scale of change.
     
    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 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 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.




2024 July 20

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2024 July 19

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2024 July 18

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2024 July 17

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2024 July 16

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2024 July 15

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