Increased emissions from shipping diversions due to Middle East conflicts have led to a spike in carbon emissions per tonne of cargo in major shipping lanes. Shippers are resorting to air and rail transport, resulting in higher CO2 emissions. Shipping disruptions have prompted global trade redirection, creating environmental challenges and economic costs.
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.
