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Wednesday, 19/01/2022, 08:24 (GMT +7)
2053
International container freight rates in 2022 'will be higher than ever before'
According to Xeneta's head of analytics, Peter Sand, in 2022, container shipping costs will be higher than ever before, even if spot rates drop slightly.
International container freight rates in 2022 will be higher than ever (Photo: Phaata.com)
Xeneta's head of analytics, Peter Sand, opened his weekly price update with a forecast that the container lines are well positioned in long-term container rate negotiations and with the expectation that The desire to secure the space of shippers will lead to higher long-term price fixing.
“This means that even if spot rates soften over the year, the average cost of shipping this year will be higher than ever before,” said Sand.
The long-term rates for the outbound, Sand said, are likely to double or triple their previous rates in January of last year. For example, the average long-term contract rate is $9,300/FEU on the Far East to North Europe route, nearly triple what it was last year.
Long-term freight rates in the return afternoon had a more modest increase compared to the same period last year, up 12% to 1,300 USD/FEU.
“We are much earlier in negotiations for long-term rates going into the US than for those from the Far East to Europe, but shippers should brace for sharp increases in the rates they are paying. Currently, the Xeneta platform shows that long-term contracts signed in the past three months from the Far East to the US East Coast have gone from $3,700 in January 2021 to $7,000 this year,” Sands said.
Spot rates on the Far East to Nordic and Far East to Mediterranean routes both set record highs, while reverse freight rates from North Europe to Far East fell 5% month-on-month to 1,300 USD.
The reductions in transpacific rates for both spot and long-term contracts in recent months have not offset the gains over the past year, and rates remain well above pre-pandemic levels.
Read more:
- Freight rates for intra-Asia routes skyrocketed
- Forwarders fear and 'don't have no clue' about freight rates next year
- No correlation found between schedule reliability and freight rates - Sea-Intelligence
- It can take 18 to 30 months for freight rates to drop back to normal - Sea-Intelligence
- Freight rates will begin to stabilize in mid-2022 - Aurelio Martínez, President of PAV
- Container shortages, port congestion and ship delays have pushed freight rates sky-high
Source: Phaata.com (According to SeatradeMaritime)
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