Textiles Dramatic rise in ocean freight container shipping spot rates: Xeneta 05 Aug '24 3 min read Pic: Adobe Stock Insights Ocean freight container shipping spot rates have dramatically risen in recent months, but the long-term market has been insulated from this volatility in comparison, perhaps until now, Xeneta said. The XSI sub-index for Far East exports, which includes the biggest fronthaul trades to Europe and the US, increased by 12.6 per cent in July to 178.8 points. Ocean freight container shipping spot rates have dramatically increased in recent months, but the long-term market has been insulated from this volatility in comparison, perhaps until now, according to Xeneta.The Xeneta global shipping index (XSI), which covers all valid long term contracts in the market, reached 151.5 points in July.Ocean freight container shipping spot rates have dramatically risen in recent months, but the long-term market has been insulated from this volatility in comparison, perhaps until now, Xeneta said. The XSI sub-index for Far East exports, which includes the biggest fronthaul trades to Europe and the US, increased by 12.6 per cent in July to 178.8 points.While this is still 4 per cent lower than December last year, it represents a month-on-month (MoM) increase of 2.5 per cent from June, the Norway-based ocean and air freight rate benchmarking and market analytics platform said in a release.More notably, the underlying XSI sub-index for Far East exports, which includes the world’s biggest fronthaul trades to Europe and the United States, increased by 12.6 per cent in July to 178.8 points.This coincides with short term rates on major trades from the Far East to the United States and Europe beginning to soften in July from the massive increases seen over recent months, Xeneta noted in a release.“Long term ocean container shipping rates remained subdued despite massive increases on the short term market in May and June – but that is starting to change,” Xeneta senior shipping analyst Emily Stausboll said.“This is a pivotal time for the market. Shippers will be hoping the spot market crashes back down hard and fast, while carriers will be doing everything possible to keep short term rates elevated for as long as possible,” she observed.Long term shipping rates on the major fronthauls from the Far East to Europe and the United States may now be showing signs of upward pressure, but the backhaul trades remain subdued in July.The Far East export sub-index of the XSI increased by 12.6 per cent in July to 178.8 points. While this is significant given the importance of the major fronthaul trades involved, developments on the long-term market are still a long way from matching the massive spike in spot rates.The sub-index for Far East imports fell to 94.1 points in July—15.7 per cent lower than June and the lowest this sub-index has been since the first quarter of 2020.The XSI for US imports rose for the second month in a row in July, this time growing by 6.4 per cent from June to bring the index to 161.3 points. July’s figure is down by 30.4 per cent YoY, but up by 9 per cent from May 2024, when the sub-index bottomed out at 147.9 points.The sub-index for US exports fell by 10.2 per cent in July—the biggest MoM drop since April 2023. It now stands at 108.8 points, and its lowest level since October 2021.The sub-index for European Imports rose to 167.5 points in July—a 2.7-per cent increase following two months of declines. This leaves the index down by 9.6 per cent YoY.The sub-index for European exports fell by 4.8 per cent in July, making it five consecutive months of decline. It now stands at 114.6 points—the lowest it has been since January 2021. Fibre2Fashion News Desk (DS) More Textiles News - Norway... -->