While Drewry notes a decrease in spot rates for container shipping in February 2024, Xeneta reports an increase in contractual rates. This marks the most significant monthly rise in the past eighteen months, occurring just as negotiations for the renewal of numerous long-term contracts are about to commence. In February, the global Xsi index reached 154.4 points, recording the sharpest increase since June 2022. According to the research company, this is primarily due to the addition of surcharges related to deviations in the Red Sea on existing long-term contracts, especially for trade between Asia and Europe.
An important event for negotiations in the United States is the TPM24 in Long Beach, from March 3 to 5, 2024. This event will serve as a crucial indicator for the trends in the first part of the year, particularly for transpacific routes. Xeneta anticipates that shipping companies will push for higher freight rates, while shippers will resist, arguing that the Red Sea crisis does not affect the United States and that spot rates are, in fact, decreasing.
However, this last point mainly concerns U.S. imports on the West Coast, while the situation on the East Coast is influenced by events in the Suez Canal and, therefore, the Red Sea, as well as the Panama Canal. In the latter case, it seems that the situation with transits is slightly improving. At TPM24, Xeneta will unveil the next generation of its benchmarking platform for maritime and air transport rates.
