Container freight rates for Asia-Mediterranean route remain stable until the end of the year

Container freight rates for Asia-Mediterranean route remain stable until the end of the year

Spot freight rates on the Asia-Mediterranean route have remained at around 14,000 USD/FEU, this is the rate that has been maintained since the end of September 2021. Meanwhile, the rate for long-term contracts is 9,000 USD/FEU.

While freight rates on the Asia-Mediterranean route remained stable, freight rates for the Asia-North Europe route fell in the first months of 2022.

“In the second half of 2021, spot rates to North Europe from the Far East were on average $860 per feu higher than those to the Mediterranean, while long term rates were $1,350 per feu higher. In the first two and a half months of 2022, the gap between the two has again fallen, and on the spot market… leaving them cheaper than the shorter journey to the main Mediterranean ports and hubs," said Peter Sand, head of analytics at Xeneta.

The narrowing of the freight gap between the two routes to the Mediterranean and Northern Europe will make Mediterranean ports less attractive to shippers who are looking to save costs by using cheaper shipping services to the Mediterranean, and then continue to ship the goods to Northern Europe. “Switching to importing through Mediterranean ports instead of sailing further North will not offer any substantial discount on freight rates for shippers,” said Sand.

Xeneta says that higher rates are supported by disruptions in the transportation industry, not by increased volumes. In addition, the recent COVID-19 lockdowns in many parts of China threatens to upset the balance seen in recent months.

“Despite the softening in spot rates to North Europe in March, the latest COVID lockdown in southern China may leave both shippers and carriers again having to find solutions to new problems quickly. Should the situation deteriorate further, it may stop the current trend of softening spot rates,” Sand said.

Read more:

• International container freight rates in 2022 'will be higher than ever before'
• Freight rates for intra-Asia routes skyrocketed
• High freight rate forecast affects the recovery of the global economy

Source: Phaata.com (According to SeatradeMaritime)

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