World News
'Changing Fortunes Appear Imminent' in Container Market: Xeneta
After 12 consecutive months of declines in long-term container freight rates, a rally may be around the corner, according to analytics firm Xeneta.
Xeneta data show contracted rates have dropped by 62.8% since this time last year, with the sharpest declines seen in the Far East.
But these declines may have reached their limit, Peter Sand, chief analysts at Xeneta, said in an emailed research note on Thursday.
"The industry needs to bear in mind developments in the spot market," Sand said.
"Here carriers have managed to lift the rates on the major trades in the past couple of months.
"As we know, the long-term market follows spot market movements, albeit with a slight lag.
"Therefore, regardless of the big plunge here - which shippers should benefit from – the falling rates may not last.
"So, I don't think shippers should be complacent; we could be approaching a market shift."
The container segment is the largest consumer of bunker fuel within the shipping industry.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 644.50 | 1.00 | 782.00 | 10.50 |
| Rotterdam | 590.00 | 10.50 | 750.50 | 9.00 |
| Houston | 608.50 | 11.00 | 777.00 | 10.50 |
| Fujairah | 643.00 | 0.50 | 891.50 | 3.50 |
| Global 20 Ports Average | 658.50 | 3.50 | 848.50 | 2.50 |
| Global 4 Ports Average | 621.50 | 5.50 | 800.50 | 3.00 |
| Global Average Bunker Price | 713.00 | 1.50 | 890.00 | 0.50 |
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