Xeneta’s Latest Data Predicts Continued Rise in Sea Freight Rates for February Amid Red Sea Crisis

Xeneta’s ocean freight rate benchmarking platform is reporting an increase in short-term interest rates for shipping routes from the Far East to various destinations. The data, based on over 400 million crowdsourced data points, shows significant increases in rates since the Red Sea crisis escalated in mid-December. For example, rates to the Mediterranean are expected to rise by 11% to $6507 per FEU by February 2nd, a 243% increase since December.

Additionally, rates from the Far East to Northern Europe are projected to rise by 8% to $5106 per FEU, a 235% increase since mid-December. The largest increase is for routes to the East Coast of the United States, with a 17% increase to $6119 per FEU. Despite the expected continued rise in rates, there are early signs of factors that could cause the rates to fall again after the Lunar New Year.

Peter Sand, chief analyst at Xeneta, explained that the Red Sea crisis has caused a capacity problem rather than a demand problem, leading to imbalance and instability in the market. While carriers are no longer offering premium services during times of extreme pressure on available capacity, there is still capacity available, indicating that demand for this level of service may be waning. The volatile and uncertain market conditions demonstrate the importance of being well-informed in order to navigate the current challenges.

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