A new report from Norway-based Xeneta has revealed that the container shipping market is showing positive trends amidst an uncertain global environment.
Xeneta has compiled the report after analysing Q3 data of container shipping costs. It said that the recent fall of South Korea’s Hanjin Shipping has created a new trading period for the container shipping market.
In order to prepare the report, the firm crowd sourced shipping data from more than 600 major international businesses, including more than 60,000 port-to-port pairings and 17 million contracted rates.
Xeneta's CEO Patrik Berglund said: “Short-term rates on the world’s number one trade route, Far East Asia to North American main ports, sky-rocketed largely due to Hanjin transforming oversupply to undersupply almost overnight. This enabled significant rate hikes, with the market average price for 40 containers climbing by 47% across Q3, starting at $1240 and ending on $1826.
“However, looking at today’s data we can already see that prices are trending down somewhat, meaning the Hanjin Effect is history.
“There is clearly still an issue of structural overcapacity, albeit more balanced now, and that pushes prices down, with risks for both the carriers and BCOs/shippers. Short term rates on the number two route, Far East Asia to North Europe, actually fell by 24% in Q3.”
Berglund further added that the reported market low rates have increased since Q1, climbing by 258% from the end of that quarter to the beginning of Q4. That curve was steady in Q3, but remains on an upward trajectory.
According to Xeneta, using the latest business intelligence and analytical tools will help both shippers and carriers deal with the developments happening in the container shipping market.