Rates on long-term contracts have increased by more than 150% this past year, writes Xeneta.
Container rates on long-term contracts rose to a hitherto unseen degree in May. The surge was no less than 30.1% compared to the month before, and in a single year, this type of rate has increased by all of 150.6%, according to fresh numbers from analyst firm Xeneta.
”This is a staggering development,” says Xeneta Chief Executive Patrik Berglund in a press release, adding that the company last month predicted a surge by 11% and asked itself how such a high number was possible.
Berglund calls the increases ”breath-taking” and adds that it is ”certainly a challenging time to be a shipper.”
The dramatic price development on the freight market entails, says Xeneta’s CEO, that the largest carriers will achieve ”astronomical results at the moment.” He deems the most recent quarterly reports of companies such as OOCL and Maersk ”deeply impressive” while highlighting Zim, whose earnings have increased by 113% in a single year.
On the other hand, shippers ”are being bled dry.” They are in a situation, says Berglund, where they are ”paying through the nose for services that, to be diplomatic, may not always meet expectations.”
