Rates: the eternal tango

Tough contract talks loom for shippers ‘gobsmacked’ by rate increases

With capacity remaining extremely tight ahead of Chinese New Year, shippers are bracing for a further wave of rate increases on container trades out of Asia.
The spot rate indices this week were virtually unchanged – the Freightos Baltic Index (FBX) Asia-North Europe component stable at $14,496 per 40ft, and its US west coast and east coast readings at $14,924 and $16,865 per 40ft, respectively.
However, The Loadstar understands that carriers are …

The post Tough contract talks loom for shippers...

https://theloadstar.com/tough-contract-talks-loom-for-shippers-gobsmacked-by-rate-increases/

Sub-continent shippers and forwarders switch to bulkers to stay profitable

As container pricing and related supply chain challenges mount amid wild demand swings and capacity imbalances, Indian and Bangladeshi shippers and freight forwarders – in co-ordination with government logistics leaders – have begun switching to breakbulk and other unconventional modes.
Mumbai-based Allcargo Logistics, parent company of less-than-container-load (LCL) consolidation heavyweight ECU Worldwide, is among many freight forwarders offering customers such alternatives.
“We have...

https://theloadstar.com/sub-continent-shippers-and-forwarders-switch-to-bulkers-to-stay-profitable/

Box lines firmly in control – charging ‘what they like’ on almost every trade

Container freight indices are on the rise again, but even at their highly elevated levels they mask the true cost of shipping.
For example, the Freightos Baltic Index (FBX) North European component jumped by 6% this week, to $7,791 per 40 ft – a huge 450% increase on the rate a year ago, but still unlikely to turn the heads of carriers that can easily fill ships with containers paying double …

The post Box lines firmly in control – charging ‘what they like’ on almost every trade appeared first...

https://theloadstar.com/box-lines-firmly-in-control-charging-what-they-like-on-almost-every-trade/

UN urges authorities to ‘monitor freight rates’ and ‘strengthen competition’

UNCTAD, the UN’s trade and development body, yesterday warned that surging freight rates in container shipping had implications for policymakers. Far from the expected slump in shipping when Covid hit, as we all know, in fact demand has been high – and so are rates. This four-page document notes the shortage of ships and boxes and the surge in rates. It explains the problems with routes over the past year, …

The post UN urges authorities to ‘monitor freight rates’ and ‘strengthen competition’...

https://theloadstar.com/un-urges-authorities-to-monitor-freight-rates-and-strengthen-competition/

US consumer demand for services not goods will keep freight rates high

Consumers in the United States, and the country’s low retail inventories, could keep freight rates elevated, even post-pandemic.
According to Alan Murphy, CEO & partner at Sea-Intelligence, a resurgence of consumer spending on services in favour of physical goods, won’t necessarily put a dent in the record freight levels seen during the Covid-crisis.
He said, during today’s TOC Asia webinar: “When US consumers can move their spending back to services, they’ll take …

The post US consumer demand...

https://theloadstar.com/us-consumer-demand-for-services-not-goods-will-keep-freight-rates-high/

Shipping rates rocketing again, with contract talks ‘a game of musical chairs’

Container spot rates are beginning to head upwards again across all trades from already elevated levels, as carriers reduce their commitment to contract volumes in favour of much higher FAK rates.
The Freightos Baltic Index (FBX) China-North Europe component edged up to $7,316 per 40ft this week, and market reports to The Loadstar suggest rates on the route are set to soar again next week, returning to their mid-February peak of …

The post Shipping rates rocketing again, with contract talks ‘a...

https://theloadstar.com/shipping-rates-rocketing-again-with-contract-talks-a-game-of-musical-chairs/

Market insight: Frustration boils over in the bunker

The bunker mentality in logistics is awful.
Indeed 
Far from being educational, perhaps instead only mildly reflective, if anything, this column today is a mere representation of the informal feedback received from the corporate side and our private circles.
Taking a breather from the numbers, the insights and the like, the classic “do not shoot the messenger” applies.
But also, “if they talk about it, we talk about it” – and if they don’t …

The post Market insight: Frustration boils over in the...

https://theloadstar.com/market-insight-frustration-boils-over-in-the-bunker/

Ripples from Suez ending in waves of price rises on all container tradelanes

There are reports of “sharp increases” in Asia-Europe container spot rates this week, as the fallout from the week-long Suez Canal blockage restricts both vessel and equipment capacity in Asia.
Today’s Ningbo Containerized Freight Index (NCFI) North Europe and Mediterranean component jumped by 8.7%, almost matching the 8.6% increase on the Shanghai Containerized Freight Index (SCFI).
“Carriers collectively pushed up rates for April voyages and booking prices rose sharply,” said the NCFI …

The...

https://theloadstar.com/ripples-from-suez-ending-in-waves-of-price-rises-on-all-container-tradelanes/

Anger as Maersk suspends contract bookings, sparking scramble for capacity

Maersk’s decision to “temporarily suspend” spot and short-term contract bookings from Asia following the Suez Canal blockage has left forwarders and NVOCCs scrambling for alternatives.
The carrier said on Tuesday it estimated a loss of capacity across its network of up to 30% “over multiple weeks”, in addition to equipment shortages in Asia.
One UK forwarder The Loadstar spoke to today said although he appreciated the difficulties for Maersk, he was “shocked” …

The post Anger as Maersk suspends...

https://theloadstar.com/anger-as-maersk-suspends-contract-bookings-sparking-scramble-for-capacity/

Sky-high container spot rates spark emergence of ‘dark side’ of shipping

Ocean carriers are cracking down on a spike in fraudulent contract bookings being driven by sky-high FAK rates from Asia.
Moreover, forwarders are gaining business from shippers based on “speculative” quotations.
In their struggle to overcome supply chain disruptions, embattled shippers faced with massive increases in their transport costs have widened the net to source new service providers and indirectly encouraged the emergence of what one contact described as the “dark side …

The post Sky-hig...

https://theloadstar.com/sky-high-container-spot-rates-spark-emergence-of-dark-side-of-shipping/

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