Xeneta’s Post

Immaturity brings volatility; If there is continued slowing in volume growth into 2025 and carriers do not manage capacity accordingly then it should put further downward pressure on spot rates, but it is important to view the data in the context of each individual trade lane in order forecast and manage freight spend effectively. For example, China to Mexico West Coast is an immature trade lane, certainly in comparison to the Transpacific trade into the US West Coast. #containershipping #logistics #supplychains #mexico #globaltrade Xeneta #freightrate #data #insights

Predicting how and why ocean container shipping rates rise or fall is not an easy task and means shippers struggle to forecast freight spend with any degree of accuracy or confidence, especially in light of the volatility in 2024. There is no crystal ball, but by combining Xeneta data and market intelligence you can gain valuable insights. Very interesting insights on this article ! #Xeneta #Xenetabylane

Hey everyone, have you heard the latest in global trade? We’re in the middle of a serious container capacity crunch right as the peak shipping season starts. Freight spot rates have jumped around 30% in just a few weeks and are still climbing!!! Here’s what’s going on: 🌍 Global Trade Faces Container Capacity Crunch Just in Time for Peak Shipping Season 🚢 🌧️ Supply Chain Woes: Bad weather, longer ocean transits, and ships skipping ports are making supply chain issues worse. Freight intelligence firm Xeneta is warning that rates could keep rising through June, even higher than the Red Sea spike we saw earlier, which means higher prices for consumers. 📈 Market Impact: The beginning of the peak shipping season, combined with longer routes to avoid the Red Sea and bad weather in Asia, has really messed up key trade routes. To keep on schedule, ocean carriers are skipping ports or cutting down their port time, meaning fewer empty containers are getting back where they’re needed. 💼 Business Implications: This is hitting consumer goods hard, especially with back-to-school and holiday items on the move. Emily Stausbøll from Xeneta says spot rates are now higher than during the Red Sea crisis earlier this year, which is pretty dramatic. The gap between spot and long-term rates is widening, and shippers are paying more and risking cargo rollovers. 🚢 Ongoing Challenges: DHL is seeing container shortages and longer transit times, affecting major trade routes from Asia to Latin America, the Transpacific routes, and Asia to Europe. Judah Levine from Freightos points out that there’s no extra capacity, and recent bad weather has made delays worse, with fewer empty containers going back to China. 🔍 Looking Ahead: Early data from Xeneta suggests rates will keep going up into June, with a new round of rate increases set for June 1. The International Longshoremen’s Association's ongoing contract talks could add more delays if things don’t get resolved soon. So, as we deal with these turbulent times in global trade, it’s crucial to stay on top of supply chain operations. If you have any questions or need more insights, feel free to reach out. Ozeol.com commits in keeping prices as low as possible for all those suppliers that are struggling with their stock. We want to provide assistance not only providing your brand visibility across Europe but also still being your clear choice for a clear warehouse. #SupplyChain #GlobalTrade #Logistics #Shipping #FreightRates #ContainerShortage #MarketUpdate #OzeolBogota #Ozeol #OzeolInternational #Destocking #Clearance #Closeouts Nadège Lenoir wajdi soussi Mohamed Lotfi Abdelkefi Stéphanie GAGNEAUD-AMMAR Nathalie ARNAUD E. Adiel Gutierrez Laura Santacruz Daniel Fonseca Diego Castro Paola Garcia Luisa Carmona Diana Pardo Laura Valentina López López https://lnkd.in/envT5Jq5

Sudden container crunch sends ocean freight rates soaring, setting off global trade alarm bells. 🔔 🚢 An ocean container capacity crunch has hit global trade just as peak shipping season starts, with freight spot rates up some 30% over the past few weeks and heading higher. Bad weather, longer ocean transits, and vessels skipping ports are adding to the supply chain issues. Freight intelligence firm Xeneta is warning that rates could rise through June, and the "dramatic" rise will surpass the Red Sea spike, ultimately hitting consumer prices. A perfect storm in global trade is creating a shipping container capacity crunch, fueling a sudden and surprise spike in ocean freight rates. The beginning of peak shipping season, coupled with the longer transits to avoid the Red Sea, and bad weather in Asia, have hit the flow of trade on key routes. Ocean carriers are skipping ports or decreasing their time at port, and not picking up empty containers, in an effort to keep vessels on track for delivery. The supply chain cost issues come at a time when consumer goods for back to school and the holidays are set to be moved on the water. "From the Far East into the U.S. West Coast, it is likely spot rates will surpass the level seen at the height of the Red Sea crisis earlier this year, which demonstrates how dramatic the recent increases have been," said Emily Stausbøll, senior shipping analyst at Xeneta. Xeneta ocean freight rates show the rallying spot market and the widening spread between spot and long-term rates. "The bigger the spread between long and short term rates, the greater the risk of cargo being rolled, which we know is already happening," she said. Spot rates had fallen after the sharp rise triggered by Red Sea tensions in early 2024, but since the end of April they began spiking by as much as $1,500, on average, on routes to the U.S. coasts, and now some of the highest contract rates charged by shippers are over double the rates of just a month ago. #shippers #rates #containers #Xeneta #redsea #warning

Trans-Pacific container spot rates have seen a significant drop, a reflection of the broader market adjustment in shipping as capacity expands and demand levels out. This trend underscores the shipping industry's ongoing recalibration. Take a look at our latest blog post for Fuze Freight Discussions 😊👉 https://ow.ly/cAQL50RcH9u

June has brought a noticeable rise in container shipping rates. Discover the underlying causes of the price hike and its potential impacts on global trade in our newest blog post, with special reference to the analysis from Container xChange - Globalia's digital partner. Click here to stay updated: https://lnkd.in/dBzMZYub #maritimeshipping #economy #logistics #oceanfreight #shippingindustry #logisticsnetwork #logistics #freightrates #globaltrade #supplychain #maritimeshipping #trade #economy #ShippingNews #containershipping #logisticsmanagement #FreightForwarding #ShippingTrends #maritimeindustry #cargo #transportation #importexport #shippingupdate

Sudden container crunch sends ocean freight rates soaring, setting off global trade alarm bells KEY POINTS *An ocean container capacity crunch has hit global trade just as peak shipping season starts, with freight spot rates up some 30% over the past few weeks and heading higher. *Bad weather, longer ocean transits, and vessels skipping ports are adding to the supply chain issues. *Freight intelligence firm Xeneta is warning that rates could rise through June, and the “dramatic” rise will surpass the Red Sea spike, ultimately hitting consumer prices. #shipping #freight #import #export

A perfect storm in global trade has resulted in a sudden, surprising spike in ocean freight costs. The impact is likely to be shared from the Far East to the West Coast. Thin capacity, trade lane disruptions, and high demand at the start of the primary shipping season are factors. Carriers may now contract for space protection and charge premium diamond rates. If this continues supply chain costs could reach a post pandemic high. #GlobalTrade #SupplyChain

Navigating the Red Sea crisis proved tumultuous for shipping, surpassing early Covid-19 impact. Xeneta data reveals a 200% spike in Far East to Europe shipping costs during the first 52 days of the Suez crisis, outpacing initial pandemic rate increases. While rates haven't hit Covid-19 peaks, the abrupt Red Sea crisis escalation causes disruptions surpassing early pandemic months, notes Xeneta analyst Emily Stausbøll. Shippers grow wary of opaque surcharges, and Xeneta warns of increasing impatience and suspicion towards carriers prolonging elevated rates. Confusion reigns with lump-sum payments covering various surcharges, including peak season, EU ETS, Suez Canal transit fees, and re-routing costs, as highlighted by James Hookham, Global Shippers Forum Director, on The Loadstar Podcast. Amid heightened sensitivity, Hookham advocates for carrier transparency, especially considering Covid-19 experiences. Xeneta's chief analyst, Peter Sand, acknowledges carrier challenges but emphasizes the need for trust-building transparency. As shippers anticipate rate decreases once carriers address the Far East capacity crunch due to delayed ships returning via the Cape of Good Hope, there's recognition that transparency is key. Hookham suggests improved schedule stability as new Cape circumvention arrangements settle. Alphaliner notes spot rate easing, with the Shanghai Containerized Freight Index dropping 2.7% to 2,179 points, marking two consecutive weeks of decline. Asia-North Europe rates declined, while Asia-North America rates continued rising. In summary, the Red Sea crisis propels shipping rates beyond early Covid-19 impact, with industry grappling to justify surcharges transparently. As the situation evolves, anticipation grows for rate stabilization or decline, offering relief to the industry. #ShippingIndustry #RedSeaCrisis #ShippingRates #GlobalTrade #Logistics #SupplyChain #Covid19Impact #TransparencyInShipping #SuezCanal #GlobalEconomy #SupplyChainChallenges

 📢 A 'carrier-controlled market' as spot rates rise and capacity tightens The container shipping market has been experiencing significant turmoil recently, with escalating spot freight rates and tightening capacity out of Asia. The Red Sea crisis and higher-than-expected demand have caught many forwarders off guard, leading to sharp increases in spot freight rate indices. Carriers are prioritizing higher-paying FAK shipments over contract cargo, resulting in surcharges being applied by major carriers like Maersk. Some forwarders are facing challenges in securing bookings, as carriers control the market dynamics. Expectations point towards significant rate increases in the coming months, with projections reaching up to 5,000 𝑝𝑒𝑟 40𝑓𝑡 𝑜𝑛 𝐴𝑠𝑖𝑎−𝑁𝑜𝑟𝑡ℎ 𝐸𝑢𝑟𝑜𝑝𝑒 𝑎𝑛𝑑 5,000 per 40ft on Asia−North Europe and 5,400 on Asia-Mediterranean by June. Industry experts like Peter Sand from Xeneta anticipate a challenging third quarter, with rates potentially surpassing previous peaks. The market is volatile, with strong rate rises observed on the Asia-North America trades as well. #containershipping #rates #ratesincrease https://lnkd.in/dpkYEhYZ