Research by Xeneta indicates that long-term rates on transatlantic and South American East Coast routes are significantly higher than 2019 levels, with the former seeing a 144% increase and the latter experiencing a rise of 111%. However, the shortest Mediterranean trade route witnessed a decline of 38% since 2019. Freight rates on export corridors in the spot market have fallen by nearly 70% on the South American East Coast, while on the Far East Corridor, the rate has fallen 69% YoY, with spot trading prices now at almost $600 per feu.
These declines have led to long-term contract rates, already fixed for multiple months, that have lagged behind the spot market. Xeneta stated that transport companies are also experiencing the depressing developments of weaker long-term export contracts in Europe, with declines of up to 45% in the last three months compared to peak values. While the collapse in spot rates has yet to be fully reflected in long-term contracts on some routes, it remains uncertain as to whether this indicates relative strength or an ability for further sharp declines.
Tags: Container Freight Rates,Europe,America
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