Updated
Updated · Riviera Maritime Media · Aug 14
Ocean Carriers Lift Long-Term Box Rates 40%-41% Since February as Middle East War Disrupts Trade
Updated
Updated · Riviera Maritime Media · Aug 14

Ocean Carriers Lift Long-Term Box Rates 40%-41% Since February as Middle East War Disrupts Trade

1 articles · Updated · Riviera Maritime Media · Aug 14

Summary

  • Long-term container contract rates from the Far East have climbed 41% to the US West Coast, 40% to the US East Coast and 41% to North Europe since late February, Xeneta said.
  • Nearly six months of war-driven disruption in the Middle East has tightened shipping networks and shifted pricing power to carriers, which Xeneta said are now dictating both short- and long-term rates.
  • Spot prices have surged even faster: on the trans-Pacific to the US West Coast, spot rates now sit $4,103 per FEU above long-term rates, giving carriers room to keep pushing contract prices higher.
  • Xeneta urged shippers to avoid locking in one-year deals at current levels and instead seek shorter contracts with adjustment clauses, arguing the market remains structurally distorted and unlikely to normalize soon.

Insights

Are shipping carriers using the Middle East conflict as a convenient excuse to permanently inflate global freight rates and maximize their profits?
With ships taking longer routes to avoid the Middle East, how severely will this structural shock impact global inflation and retail prices?