Shippers face doubling freight rates and delays exporting goods out of Asia
The Xeneta Weekly Ocean Container Shipping Market Update provides data and intelligence including the latest freight rate and capacity movements across global trades with supporting insight from Peter Sand, Xeneta Chief Analyst.
“Spot rates remain elevated across major fronthaul trades with further increases expected mid-June as disruption from Middle East conflict continues to bite hard. From Far East to US West Coast and US East Coast, spot rates are up 127% and 106% respectively since pre-Strait of Hormuz crisis and could double again before peaking. It is possible rates could get close to the Red Sea crisis peak in 2024, so shippers should act decisively to reduce their exposure to the spot market.
"Shippers are not only paying the price in freight rates, there are also delays exporting goods out of the Far East. Even large volume shippers with valid long term contracts are unable to move containers, with carriers stating services are fully booked into July. But a ship that is fully booked weeks into the future did not become fully booked yesterday – this demand has been building, so what have carriers been waiting for? (....)