Carriers are seizing the opportunity while the market is hot, adding capacity into US East Coast ahead of what could be a turn in the market within the next two to three weeks.
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.
Xeneta analyst insight – carriers seize opportunity as freight rates head towards record levels from Far East to US
Peter Sand, Xeneta Chief Analyst:
“Spot rates from Far East to US West Coast and US East Coast are up 324% and 325% respectively since pre-Hormuz crisis at the end of February. That leaves freight rates on these critical trades just 18% and 11% short of the all-time high set during the COVID-19 disruption. With bunker prices pushing fuel surcharges higher, surpassing the pandemic peak cannot be ruled out, which would be an extraordinary market development.
“If a freight rate record is broken, it is most likely to occur on the trade into US East Coast, but even if we do not see a new all-time high, the fact we are even discussing the possibility demonstrates how sensitive critical ocean container shipping trades are to geopolitical forces and how a regional conflict in the Middle East can have major implications at a global level. (....)