Latest news with #Xeneta
Yahoo
6 days ago
- Business
- Yahoo
Trans-Pacific shippers' turn to pause as box rates end slide
While trans-Pacific shippers fatigued from the Great Tariff War step back, the market has seen a pause in plunging container rates just as the peak season is supposed to be getting underway. Spot rates on various trade routes have seen dramatic shifts, said analyst Xeneta in a market update, reflecting broader industry challenges and responses. Market average spot rates for container shipping on July 18 for the Far East to U.S. West Coast route stood at $2,313 per forty foot equivalent unit (FEU), while the rate to the U.S. East Coast is higher at $4,314 per FEU. A deeper dive shows that West Coast prices have seen no change as of mid-July, halting a steep decline amounting to 28% over the first few days of this month. The U.S. East Coast rates have similarly seen a decline, dropping 7% since July 14, and a 26% fall since the end of June. Overall, the drop to the West Coast stands at 58% since peaking on June 1, whereas the rates into the East Coast decreased by 35% over the same timeframe. These dynamics suggest shifts in trading priorities and logistical strategies. The notable variance between trading routes — the gap between the West and East Coast lanes — has inflated to $2,000, nearly double that on June 1, which was $1,155. This enlarged gap spotlights the pronounced economic adjustments facing these trades. 'Sentiment has turned and rates are falling despite the higher U.S.-China tariffs still being on hold, and the deadline for the rest of the world extended into August,' said Emily Stausboll, Xeneta's senior shipping analyst, in a note. 'Shippers can't frontload forever, no matter what happens with the tariffs, so the longer term direction for rates was always going to be downward.' Capacity reduction by carriers on trans-Pacific trades has somewhat mitigated weakening rates on U.S.-bound routes, yet carriers are fighting an uphill battle to stabilize rates further by year's end. The figures for Far East to North Europe and Mediterranean routes are $3,410 and $3,853 per FEU, respectively. Interestingly, the North Europe to U.S. East Coast route records a much lower average rate of $2,011 per FEU. In contrast, the Far East to North Europe trade has experienced an 18% surge in spot rates since June and a 78% increase from late May. This rise is strongly tied to ongoing congestion at North European ports, driven by a spate of new high-capacity additions earlier this year, combined with labor disruptions and logistical hurdles like low water levels in the Rhine river. However, the Far East to Mediterranean trade diverges from this path, instead mirroring the downtrend mirrored in American markets. 'This is an ebb and flow of capacity across global supply chains as carriers seek out the higher rates, but by adding this capacity they risk ruining the party for themselves on the more profitable trades,' said Stausboll. Find more articles by Stuart Chirls here.'It all unraveled quickly': Family-owned business laments tariff and trade chaos Drewry: Ocean rates fall for fifth straight week Port of Oakland containers off 10% as 'recalibration' hits ocean supply chain China could block sale of port terminals: Report The post Trans-Pacific shippers' turn to pause as box rates end slide appeared first on FreightWaves.
Fibre2Fashion
23-07-2025
- Business
- Fibre2Fashion
US tariffs trigger volatile shipping rate swings: Xeneta
President Donald Trump's sweeping US tariff hike on China and other trading partners in April continues to ripple through global container shipping, triggering wild swings in freight rates and supply chain disruptions across major routes. In the wake of 'Liberation Day' tariffs, transpacific shipping demand plummeted, with carriers quickly redeploying capacity away from China–US trades towards North Europe and South America East Coast (SAEC) lanes. But a mid-May tariff truce between the US and China ignited a cargo rush, causing West Coast spot rates to surge 75 per cent and East Coast rates to jump 58 per cent in just two days (between May 31 and June 1). As capacity swiftly returned to US routes, the oversupply drove rates down once again—by 58 per cent into the West Coast and 35 per cent into the East Coast since June 30. This cycle also distorted the normal price gap between coasts: the usual $1000 per forty-foot equivalent unit (FEU) spread widened to $2015 per FEU, with US West Coast spot rates dropping faster than East Coast equivalents, according to market intelligence company Xeneta. The South America East Coast (SAEC) trade has felt severe aftershocks. As carriers pulled vessels to service the transpacific boom, SAEC spot rates soared from $1,890 per FEU on May 1 to a peak of $6,945 on July 16—up over 260 per cent. Compounding the issue, demand from Asia to SAEC hit record highs in May. Now, as rates fall back in the US, capacity is once again shifting—this time back to SAEC to capitalise on the higher prices. This will pressure rates downward, illustrating how carriers inadvertently undercut their own gains by chasing higher-paying trades too aggressively. Far East–North Europe trades also saw a surprising 78 per cent rate surge between May-end and July, with average spot rates now at $3,410 per FEU. While much of this is driven by labour strikes and low Rhine water levels hindering barge movements, tariff ripple effects also played a role. Carriers initially added record-breaking capacity to this corridor when pulling out of US routes in April, intensifying port bottlenecks just as inland disruptions peaked. Looking ahead, rates into both US coasts and SAEC are forecast to continue falling through the rest of 2025—unless carriers sharply cut capacity or a new market shock arises. The short-term spike after the tariff truce proved unsustainable as shippers frontloaded inventories during the 90-day window, a strategy that can't be repeated indefinitely. Conversely, European shippers may face persistent upward pressure on contract rates due to ongoing North European port congestion, making it a key outlier amid falling global rates. To weather such volatile freight swings, industry experts recommend index-linked contracts. These agreements anchor long-term pricing to prevailing market benchmarks, reducing the need for constant renegotiations during geopolitical or economic shocks. This model allows shippers and logistics partners to focus on service reliability and long-term supply chain resilience. US tariff hikes by President Donald Trump continue to disrupt global container shipping, triggering volatile freight rates. After a cargo rush post-tariff truce, spot rates soared, then slumped on US trades. South America and North Europe lanes saw major ripples. With rates likely to fall, experts urge index-linked contracts to manage supply chain risk. Fibre2Fashion News Desk (HU)
Business Times
09-07-2025
- Business
- Business Times
Surging UK shipping costs threaten to deliver a new price shock
[LONDON] The cost of shipping goods from China to the UK has surged due to ripple effects of the US trade war, threatening to push up consumer prices and complicate the Bank of England's plan to keep nudging down interest rates. The price of transporting a 40-foot container from China has jumped about 60 per cent over the past three months to US$3,305, according to data from shipping analytics company Xeneta. A separate weekly gauge published by maritime consultancy Drewry showed a similar rise. The increase was fuelled by demand from American businesses that have been rushing to import products before US President Donald Trump's latest round of tariff hikes kick in. That's absorbed capacity and pushed up the cost of shipping on other trade routes to mainland Europe and the UK. It's possible that the increase will prove to be just a short-lived side effect of the shifting US trade policies, and shipping costs remain well below the levels seen after the pandemic. But economists say it is likely to at least temporarily push up UK consumer prices given that British retailers are already dealing with razor-thin profit margins and will likely pass on the added expense. 'Inflated freight prices continue to add pressure to retail supply chains,' said Andrew Opie, director of food and sustainability at the British Retail Consortium. 'In a low-margin, competitive market, shipping adds to already significant costs.' The shift is injecting another element of uncertainty into the inflation outlook just as the Bank of England is looking to continue gradually lowering interest rates and the economy shows signs of slowing. But inflation has remained well above the bank's 2 per cent target and Jonathan Steenberg, UK and Ireland economist at Coface, estimates that the shipping costs may add as much as 0.3 percentage points to the consumer-price index in the third quarter, pushing it to a 3.6 per cent rate. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Over the longer term, it's possible that Trump's tariff increases could have a disinflationary impact if Chinese businesses cut prices to expand their exports to the UK to make up for slower US sales. Yet for now, the cost increases are adding another squeeze to UK businesses that have already been cutting jobs and raising prices to compensate for an increase in payroll taxes and the minimum wage. Almost 40 per cent of firms with at least 10 employees in June said they were concerned about supply chains over the next year, up five percentage points from March, according to a recent data published by the Office for National Statistics. 'We are a pretty open economy in the UK,' Steenberg said. 'We saw a more extreme version of this back in 2021-2022, when we saw this clearly feed into import prices and the prices of several goods. So we are quite sensitive to this.' Since many companies rely on longer-term shipping contracts, the recent rates will likely continue to be felt in the months ahead. Peter Sand, chief analyst at Xeneta, said the costs of shipping have also been affected by labour shortages and maintenance works at northern European ports. Demand for shipping into the UK has also been high, with Chinese goods exports into Britain climbing 11 per cent year on year in April. Sand said his firm 'expects the lions' share of these inefficiencies to stick around throughout the year'. 'It all adds up,' he said. BLOOMBERG
Bloomberg
09-07-2025
- Business
- Bloomberg
Surging UK Shipping Costs Threaten to Deliver a New Price Shock
The cost of shipping goods from China to the UK has surged due to ripple effects of the US trade war, threatening to push up consumer prices and complicate the Bank of England's plan to keep nudging down interest rates. The price of transporting a 40-foot container from China has jumped about 60% over the past three months to $3,305, according to data from shipping analytics company Xeneta. A separate weekly gauge published by maritime consultancy Drewry showed a similar rise.
Yahoo
30-06-2025
- Business
- Yahoo
Container rates from key US trade partner plummet 39%
The latest weekly ocean container shipping market reveals a stark contrast in rate movements across major trade lanes, as the trans-Pacific trade from the Far East to the United States saw a dramatic decline. The market average according to analyst Xeneta on Far East to U.S. West Coast services has fallen significantly since a spike on June 1. Declining spot rates have all but erased that recent surge, with rates standing at $3,317 per forty foot equivalent unit on June 27, up just 6% from May 31, effectively neutralizing the recent upward trend. This trade lane is particularly impacted by the U.S.-China trade war, and it is evident that capacity is now more than meeting demand, empowering shippers to push back against peak season surcharges by carriers. In contrast, the market average on the trade from the Far East to the U.S. East Coast has seen a more moderate decline, falling 9% since June 1 to $5,990 per FEU. Despite this drop, the spot rate remains 43% higher on June 27 than on May 31 with the spread between the coasts reaching $2,673, the highest in 10 months. 'Average spot rates have plummeted from Far East to U.S. West Coast, down 39% since June 1, but it has not been so dramatic into the US East Coast with rates holding up stronger – for now,' said Peter Sand, Xeneta chief analyst, in a note. 'The trans-Pacific into U.S. West Coast is the key battleground for carriers when it comes to China exports, so spot rates have fallen harder and faster as they prioritized bringing capacity back onto this trade in the immediate aftermath of the lowering of 145% tariffs.' Meanwhile, average spot rates from the Far East into the Mediterranean and North Europe, which experienced jumps in early and mid-June, remain elevated. On June 27, rates to the Mediterranean were 5% higher and to North Europe 14% higher compared to June 1, indicating sustained demand in these regions. The trade from North Europe to the U.S. East Coast has seen little change, with the market average staying flat from a week ago at $2,105 per FEU. This represents only a 3% increase from May 31. This trade lane is currently influenced by negotiations between the European Commission and Washington on a new trade agreement before July 9, when a 90-day pause on higher tariffs is set to expire. 'Shippers are seeing how this game is playing out and are calling the carriers' bluff by pushing back on the higher rates and peak season surcharges,' said Sand. 'It is only a matter of time until shippers do the same into the U.S. East Coast and spot rates begin to fall sharply there too.' Find more articles by Stuart Chirls maritime chief 'not a big fan' of ocean carriers' 'approach' as agency reviews antitrust immunity Drewry: No 'lasting impact' from tariff break as ocean rates fall again With Mideast shipping on high alert, Maersk re-opens Israel portMaersk unveils new AI platform to simplify customs tasks The post Container rates from key US trade partner plummet 39% appeared first on FreightWaves.
