The market might be softening, but the ripple effect is still very much in play.
Join Emily Stausboll in February’s Market Update as she walks through which global trade routes are seeing ocean freight prices soften, how the Red Sea crisis differs from what we saw in COVID and what we can expect to see going forward.
Emily draws on Xeneta data and other relevant datapoint from industry sources to help paint a picture of why the market has moved the way it has and why shippers shouldn’t become complacent just because we’re no longer seeing the same GRIs that were pushed through 1st February.
Watch the February Market Update to discover:
- What’s causing ocean rates to soften
- The ripple effect on the North Europe to US East Coast and Transatlantic corridors
- The likelihood of amplified ocean freight rates being sustained post Lunar New Year
- The split between those who paid crisis-related surcharges and those who were relatively protective of these additional charges
- How Emily uses Xeneta data to draw the insights needed to gain a complete view of the market
Past the first stage of disruption
The market softening has as much to do with dependence on the short-term market slowing as it does with shippers and carriers responding so effectively to change.
As Stausboll notes in the webinar:
“Carriers are starting to adapt to this new situation, shippers are now aware that transit times are longer, you’re not in that first phase of expecting goods to arrive and they’re suddenly not arriving because they’re sailing around South Africa.
Secondly, Chinese New Year has now passed us. So, anybody who was trying to get their volumes out of the Far East ahead of the shut up down and factories closing and production falling in the Far East, we’re really pushing to get [their] containers out ahead of that deadline and that coincided almost perfectly with the effects of the Red Sea Crisis.”
According to a research note by MUFG, the Red Sea caused “the largest diversion of international trade in decades”. So whilst the market has been quick to respond and we have signs of supply chain inflations having already peaked, the scale of this disruption will take time to fully recover.
And Xeneta will be using its data to track and report on the market every step of the way.
Discover more about why the ripple effects are being felt most acutely on spot market backhauls in the Weekly Container Rate Update.
