Long-term sea freight contract prices rise sharply despite a slow decline in spot rates.

Recently, the prices of some long-term sea freight contracts have surged. However, container shipping spot rates on major East-West trade routes continue to decline.

The largest drop was recorded on the Asia-Northern Europe trade route: according to Drewry's weekly World Container Index, the shipping leg from Shanghai to Rotterdam fell 9% compared to the previous week, down to $4,682 per 40ft container. Nevertheless, this figure remains nearly 300% higher than the same time last year when rates plummeted and shipping lines faced losses.

However, some shipping routes are going entirely against this trend when it comes to long-term contract rates. For example, the average long-term rates recorded by Xeneta on the Vietnam-Rotterdam route have nearly doubled, from around $2,000 per 40ft container in July to over $3,600 currently.
In December of last year, the average long-term rates on the Vietnam-Rotterdam route were only $1,300 per 40ft container, indicating far more significant volatility than the long-term market had anticipated. Meanwhile, the Shanghai-Genoa leg of the WCI dropped 6% compared to the previous week, ending this week at $4,928 per 40ft container. The Shanghai-Los Angeles route saw little change, falling just 1% to $5,580 per 40ft. The Far East-West Coast America XSI index dropped 3% to $6,137 per 40ft, and the Shanghai-New York route of the WCI fell 4%, down to $6,364 per 40ft.

For European exporters on the trans-Atlantic route to North America, this week represents the last opportunity to ship goods before the International Longshoremen's Association (ILA) could strike on October 1st. Spot rates have held steady, rising 2% on Rotterdam-New York routes of the WCI to $2,056 per 40ft container and increasing by 3.5% on the trans-Atlantic XSI route, reaching $2,318 per 40ft.

Further south along the trans-Atlantic route from Northern Europe to North America, Xeneta also recorded significant rate drops on the Northern Europe-East Coast South America route, reaching a record low, with a minimal gap between contract and spot rates.

Source: https://vlr.vn/gia-cuoc-giao-ngay-giam-cham-nhung-gia-hop-dong-van-tai-bien-dai-han-tang-vot-19414.html

Emphasizes the need for the logistics sector to ensure its role in maintaining supply chains

Situated in the dynamic development region of the world, where trade flows converge significantly, and with a large open economy, Vietnam’s exports, imports, and e-commerce trade have been consistently growing at double-digit rates. Vietnam is consistently evaluated as one of the markets with tremendous potential for developing logistics services.

Specialized newsTue, September 24, 2024