Freight rates for Russian oil shipments from Baltic ports to India are declining after hitting record highs, driven by increased offers from Western shipowners. With Urals crude prices dropping below the $60 price cap, shipping costs have fallen to an average of $7 million per shipment, fostering trade opportunities between Russia and India.
Long-term container freight rates are on the rise as U.S. shippers negotiate new contracts at the TPM24 conference. Xeneta Shipping Index (XSI®) reports a significant global increase due to Red Sea surcharges. As negotiations begin, shipping lines and importers are at odds, with potential impacts on trans-Pacific trade and East Coast imports. Braun emphasizes the need for flexible agreements to navigate the situation.
Houthi attacks on shipping have caused a surge in sea freight rates, surpassing the early Covid-19 pandemic increases. According to Xeneta, shipping costs from the Far East to Europe rose over 200% within 52 days. Shippers are skeptical of carriers maintaining high rates and may turn to higher tariffs.
Xeneta’s ocean freight rate benchmarking platform uses 400 million crowdsourced data points, with the latest forecast based on rates received for the first week of February. Rates from the Far East to the Mediterranean and Northern Europe are expected to rise by 11% and 8% respectively, with the largest increase in rates from the Far East to the East Coast of the United States. Peter Sand, chief analyst at Xeneta, anticipates continued rate rises through February, with early signs of potential factors that could cause rates to fall again after the peak of the Lunar New Year.
Following coalition forces’ bombing of targets in Yemen to neutralize the threat to shipping in the Red Sea, the crisis has worsened, raising the risk to merchant shipping. Xeneta reports the cost to transport goods across the Cape of Good Hope is $1,000 per box. According to chief analyst Peter Sand, shipping companies may not return to the Red Sea for six months, likely leading to increased network loops and higher costs.
Following Stories in this News Digest for the week from 20 Sep 2021 to 26 Sep 2021 in descending order:…
