Long-term contracted ocean freight rates continued their ascent through June, although not with the dizzying trajectory witnessed in recent months. May’s 9% surge in prices eased back to a 2.3% gain in June.
Shippers could be forgiven for asking ‘when will it end?’ A year of historically high long-term contracted container rates is being pushed to new heights, with a further 9% surge in prices across the month of May.
Long-term contracted ocean freight rates are continuing their dizzying ascent, with a 4.1% climb in April leaving container shipping costs up 21.1% year-on-year, with a rise of 23.5% since December 2020.
Shippers are facing increasingly difficult negotiations over long-term contracted rates in a market described as nothing less than “red hot”. Rates climbed by a further 2.2% in March, consolidating gains of 9.6% in February and 5.9% in January.
2021 is shaping up to be a golden age for container ship operators, with January’s substantial rise in long-term contracted rates being “blown out the water” by developments in February.
2021 has got off to flying start for long-term contracted ocean freight rates, according to the latest XSI® Public Indices report from Xeneta.