Rates for long-term container transportation have reached their peak
Current long-term container transportation agreements are 112% higher than they were at the same time last year, and 280% more than in July 2019. This is reported by the Norwegian platform Xenta, which is engaged in a comparative analysis of data on rates for sea transportation.
The company notes that despite another sharp increase in long-term contract sea freight rates along key global trade corridors, monthly growth is slowing, and spot rates continue to decline, which suggests that prices may have peaked.
«There are clear signs that the mood has been changed. July’s growth is the slowest since January, with upward pressure on long-term trades easing as spot rates fall on major trades. In addition, traffic volumes along many corridors are declining, for example, in the first five months of 2022, European imports in containers decreased by 3%, and exports — by 6%. Prices for new deals are more likely to continue than suddenly jump again, as we are used to seeing recently», said Xeneta CEO Patrik Berglund.