The ocean freight container shipping market has experienced a notable shift, with importers beginning to resist the upward trend in spot rates. According to Xeneta, the average spot rates from the Far East to the US East Coast saw a 3.7% increase on 15 July, reaching US$10,045 per FEU, while rates to the US West Coast rose by 2.0% to US$8,045 per FEU. Despite these increases, the rate of growth has slowed compared to earlier surges.
Emily Stausbøll, a senior shipping analyst at Xeneta, highlighted a change in the market dynamics, with some carriers reducing spot rates for the first time in a significant period. This adjustment suggests an increase in available capacity, allowing shippers more leverage in negotiations. The Xeneta market 'mid-high' data further indicates a stabilization in the high-end spot rates during July, suggesting a shift in the market's direction.
Additionally, the market for fronthaul trades from the Far East to North Europe and the Mediterranean is also showing signs of reaching a peak, with smaller rate increases recorded on 15 July. Stausbøll pointed out the challenges faced by shippers due to escalating spot rates and the potential easing of these pressures as the market stabilizes.
Despite these developments, spot rates remain significantly higher than previous years, with increases of up to 455% into North Europe. The ongoing conflict in the Red Sea has been a major factor, with many container ships re-routing around the Cape of Good Hope. While a return to the Suez Canal appears unlikely in the short term, there is hope that spot market rates may soften in the latter part of 2024.
Source: container-news.com