Spot rates into US East Coast close in on Covid-19 peak while reliability deteriorates
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. Peter Sand, Xeneta Chief Analyst: Spot rates into US East Coast close in on Covid-19 peak while reliability deteriorates “Average spot rates from ...
Spot rates to the US East Coast have reached near-record levels, according to the latest Xeneta Weekly Ocean Container Shipping Market Update. Analyst Peter Sand notes that rates are now 14% short of the Covid-19 peak in January 2022, though a record level seems unlikely. The surge in rates follows the Middle East conflict in February, with a further 25% increase since early July.
Rates into the US East Coast have surpassed the peak caused by the Red Sea crisis by around USD 1,000 per FEU. However, growth has slowed slightly, but more upward pressure is anticipated ahead of Golden Week in early October.
In contrast, rates to Europe have dropped by 18% since early July, and rates to the Mediterranean have fallen by 28%. Schedule reliability has also deteriorated, falling to 29.4% in August from a 30-month high of 39% in May. On-time performance for Far East-to-Europe services has plummeted from 47% in mid-June to just 3% by the end of July.
Despite the 30-month high in schedule reliability, it remains a far cry from the standards required during normal market conditions. Shipping companies are reportedly witnessing goods departing on time less frequently, with global schedule reliability at just 29.4% in August.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
