Freight News, Sea

No relief in sight to shipping misery, says rate data firm

[ March 1, 2022   //   ]

Shipping rate data firm Xeneta said that after a rare dip in long-term contracted ocean freight rates in December and January, container shipping costs are rising once again, with a 3.9% increase in February. The geo-political situation means that the trend is unlikely to reverse any time soon.

Chief executive Patrik Berglund said: “Pandemic disruption is, to some extent, abating, but demand remains high and capacity maxed out. The congestion we continue to see, particularly at US ports, is a sign of this, with waits of approximately 35 days at Long Beach and 25 days at Los Angeles.

“And, of course, away from the US we have the distressing situation unfolding in Ukraine. The wider geopolitical concerns of this are one thing, the immediate impact on energy prices another. Crude oil costs have obviously rocketed and the carrier community will, no doubt, look to pass this on to customers to protect their own bottom lines. So, in addition to already astronomical freight costs, shippers can expect to see bunker adjustment factors leading to new surcharges, exacerbating their pain.”