Xeneta analyst insight
Peter Sand, Xeneta Chief Analyst:
“The impact of conflict in the Middle East on ocean container shipping is a rapidly evolving situation and uncertainty remains massive.
“We are seeing exactly what we anticipated when the conflict escalated – port congestion, deteriorating schedule reliability, longer transit times and surcharges being pushed out across the board.
“Shippers are exploring every available solution to keep supply chains moving without calling at Gulf ports, whether through land bridges, rerouting or alternative networks now being offered by carriers and freight forwarders.
“Around 800 000 containers per month used to travel into the region affected by this crisis. Those goods still need to reach customers and the industry is finding different ways to make that happen.”
Nhava Sheva example:
“Nhava Sheva in India has emerged as one of the more attractive stopovers for frustrated cargoes. Shippers would rather have their cargo dwelling in Nhava Sheva than stuck in the port of origin.
“The trade from China to Nhava Sheva is a textbook example of the ripple effects caused by a crisis like this. The market average spot rate has surged almost 70% over the past month, from USD 1 358 per FEU (40ft container) to USD 2 305 per FEU. But the real story is in the spread, with the market mid-high spot rate nearly doubling, up 98% to USD 2 936 per FEU. The market mid-low spot rate has increased by a lesser 51% to USD 1 765 per FEU. (....)