Global ocean freight shipping rates forecast to surge in early Feb

27 Jan '24

2 min read

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Insights

Global ocean freight shipping rates are set to rise significantly in early February due to the Red Sea crisis, according to Xeneta.
Rates from the Far East to the Mediterranean, North Europe, and the US East Coast are expected to increase by 11 per cent, 8 per cent, and 17 per cent, respectively.
This marks significant rises since mid-December.

Ocean freight shipping rates are poised to rise significantly in early February, amidst the ongoing crisis in the Red Sea, according to the data released by Xeneta, a leading ocean freight rate benchmarking platform.

The data suggests that the market average short-term rates for shipping from the Far East to the Mediterranean are expected to see an 11 per cent increase by February 2, reaching $6,507 per forty-foot equivalent unit (FEU). This marks a staggering 243 per cent rise since the Red Sea crisis intensified in mid-December, as per Xeneta.

Similarly, shipping rates from the Far East to North Europe are anticipated to climb by 8 per cent by February 2, with a market average of $5,106 per FEU. This represents a 235 per cent increase since mid-December.

However, the most significant surge in rates is observed in the Far East to US East Coast trade route. According to Xeneta's data, rates on this route are expected to jump by 17 per cent by February 2, bringing the average short-term rate to $6,119 per FEU. This is a considerable increase of 146 per cent since mid-December.

“Carriers are trying to readjust services to make up for the additional sailing time around the Cape of Good Hope. For example, they are cutting journeys short, missing port calls and increasing sailing speed. However, despite this, the early data from Xeneta suggests rates will continue to rise as we head into February,” said Peter Sand, Xeneta chief analyst.

Fibre2Fashion News Desk (DP)

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