Average Spot Rates Continue Ascent

The Xeneta Weekly Ocean Container Shipping Market Update shows spot rates just 14% shy of the COVID-19 peak on Jan. 1, 2022.

“Average spot rates from the Far East to the U.S. East Coast continue their ascent following the outbreak of conflict in the Middle East in February, climbing a further 25% since early July,” says Peter Sand, Xeneta chief analyst. “It is unlikely we see the market exceed that record-breaking level, but it cannot be ruled out and the fact it is even a topic for discussion shows how extraordinary the situation is.”

Key takeaways:

·       Average spot rates into the East Coast have already sailed past the Red Sea crisis peak.

·       Spot rates into Europe from the Far East to North Europe have fallen 18% since early July while rates into the Mediterranean are down 28%. The split in the global market remains, with the Transatlantic to East Coast still ticking upwards.

·       Global schedule reliability has fallen for three straight months to just 29.4% in August, down from a 30-month high of 39% in May. Four months ago, four in 10 ships departed on time – now it is below three in 10.