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Contracted container rates surged 33.5% in May year-on-year and 9% month-on-month
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This increase is the third largest on record and takes the total increase since the end of 2020 to 34.5%
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All major trade corridors have seen spectacular growth in rates across the first five months, with Far East export and European imports leading the way
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“With carriers blanking sailings to manage capacity, added to continuing high demand and reduced retail inventories, it’s difficult to see the prospect of any immediate rates relief on the horizon”
Long-term contracted container shipping rates surged 33.5% in May compared to the same period a year ago as demand drove up rates for all major trade corridors, according to the latest data from Xeneta.
The global Xeneta Shipping Index (XSI) shot up by a further 9.0% in May from April 2021. This month-on-month increase is the third largest on record and takes the total increase since the end of 2020 to 34.5%, said the ocean and air freight rate benchmarking platform.
XSI provides a real-time overview of the latest ocean freight rates.
All major trade corridors have seen spectacular growth in rates across the first five months, with Far East export and European imports leading the way (both up by over 50%).
Said Xeneta CEO Patrik Berglund: “A lack of equipment and the ongoing ramifications of coronavirus, added to unforeseen factors such as the blocking of the Suez Canal, have squeezed supply chains, pushing capacity to bursting point.
“With carriers blanking sailings to manage capacity, added to continuing high demand and reduced retail inventories, it’s difficult to see the prospect of any immediate rates relief on the horizon.”
Every region experienced container rate upturns in May, according to XSI.
In Europe, the import benchmark rose for the sixth consecutive month, by 3.9%, now standing 51.6% up year-on-year, and 53.5% up since the beginning of 2021. European exports, meanwhile, jumped by 8.6%, equating to a 15.5% hike against the same period last year.
The Far East experienced substantial monthly gains across both imports and exports, with the former jumping 13.8% and the latter 12.2%. Both figures now overshadow those of May 2020, with imports 26.7% up and exports a huge 63.7% higher year-on-year (56.4% up since the end of 2020).
In the US, the import benchmark rose by 13.3%—its highest single monthly increase in two years. The figure now stands 19.4% up year-on-year. US exports saw a more modest, but still strong, development, climbing by 2.9% to stand 0.4% higher than May 2020, up 8.7% since the end of last year.
Companies participating in Oslo-based Xeneta’s crowd-sourced ocean and air freight rate benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Lenovo, Nestle, L’Oréal, Thyssenkrupp, Volvo Group and John Deere.
Photo by Rinson Chory on Unsplash
