Spot market meltdown, as Transatlantic container shipping spot rates hit all-time low. A time to act for the shippers
Shippers on the trade are taking full advantage of this new reality, regaining the upper hand after the 2021-2022 pandemic period delivered dramatically high freight rates. Xeneta’s real-time data, crowd-sourced from leading global shippers shows the strongest are now paying less than USD 475 per FEU for spot business, which Sands point out is an all-time low.
Sand sharply warns and advises shippers: “Don’t wait around – jump on those deals while you can. Just like we’ve seen with fronthauls from Asia to the US and EU, carriers will be dead set on boosting the Transatlantic spot market once again. They’re not keen on bleeding cash in yet another trade. You must stay on your toes and constantly monitor rates to know when to go to market.”
“The data also shows that the number of long-term contracts coming into force in 2023 is significantly down on past years, indicating that shippers are clearly not happy with the rates on offer nor being drawn into the kind of closer relationship carriers are seeking,” he adds.
Full Press Release here: https://www.xeneta.com/news/container-rates-alert-amid-record-low-trans-atlantic-trade-rates-shippers-must-seize-opportunities-before-market-rebounds
This link if you want to see the graphics: https://www.xeneta.com/blog/container-rates-week33-2023-transatlantic-spot-meltdown-puts-shippers-back-in-charge-as-carriers-squeal
Weekly Container Rate Update Week 33’23 | Transatlantic spot meltdown puts shippers back in charge as carriers squeal
Review the spot-rate meltdown on North Europe to US East Coast.
Interesting developments in the air cargo market too – read about the actionable insights here:
Xeneta Air Freight Update Week 33 ’23: Inbound US air-cargo market shaping up for a mild peak season
https://www.xeneta.com/blog/xeneta-air-freight-rate-update-week-33-2023-inbound-us-air-cargo-market-shaping-up-for-a-mild-peak-season
Spot rates for inbound US air cargo in the first week of August confirms what Xeneta data has shown over the summer; that global spot rates are gradually stabilizing after falling consistently since early 2022 (the inbound US spot rate has dropped 65% since its peak in December 2021).
Freight forwarders allocated 53% of their inbound volumes to the spot market, down from a peak of 56% in May. This is in line with what has been observed on the shipper side. With spot rates flattening out in recent weeks, freight forwarders are changing course, moving away from spot speculation to securing longer-term rates at the lower end.
Source: Xeneta
