Summary: Ocean Freight Container Shipping Spot Rates Expected to Rise, Growth Slowing
According to Xeneta's latest data, ocean freight container shipping spot rates are projected to rise further, though the rate of growth is slowing.
Key Data Points:
- Far East to US West Coast:
- June 15: 4.8% increase in average spot rates.
- June 1: 20% increase.
- Far East to US East Coast:
- June 15: 3.9% increase, reaching $7,114 per FEU.
Insights from Xeneta Chief Analyst, Peter Sand:
- The market remains challenging, with shippers facing difficulties shipping containers on long-term contracts.
- Any sign of slowing growth in spot rates is welcomed but challenges persist.
- Some shippers are unable to ship containers on existing long-term contracts, resulting in cargo being rolled.
Other Routes:
- Far East to North Europe:
- June 15: 10% increase, reaching $6,357 per FEU.
- Far East to the Mediterranean:
- June 1: 7.2% increase, reaching $7,048 per FEU.
Historical Context:
- Compared to mid-December last year:
- US West Coast: Spot rates up 276%.
- North Europe: Spot rates up 316%.
Ongoing Challenges:
- Conflict in the Red Sea region.
- Port congestion in the Mediterranean and Asia.
- Equipment shortages.
- Shippers front-loading imports ahead of the third quarter peak season.
- Potential labor negotiations breakdown and union action at US East Coast and Gulf Coast ports.
- Impact of rising costs on inflation in the US and Europe.
Future Outlook:
- A potential ceasefire between Israel and Hamas could change the situation if it reduces attacks on container ships and facilitates a return of carriers to the Red Sea region.