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Thursday, March 28, 2024
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Peter Sand News

17 Mar 2024

Mexico Could be Back Door for Chinese Imports into US

© EvrenKalinbacak / Adobe Stock

Growth in demand for container shipping imports from China into Mexico in January 2024 increased by 60% compared to 12 months ago, further fuelling suspicions it has become a back door into the US.According to analysts at Xeneta, 117,000 TEU was shipped in January of this year compared to 73,000 TEU in January 2023 (source: Container Trades Statistics).Annual growth in container shipping between China and Mexico had already increased by 34.8% in 2023 compared to just 3.5% in 2022.Peter Sand…

06 Mar 2024

US Container Shippers Slow Walk New Contracts, Eye Easing of Red Sea Rate Hikes

© Mariusz / Adobe Stock

U.S. importers are playing the waiting game with new container shipping contracts, gambling the rate spike from Red Sea vessel attacks will fade and put them in a stronger negotiating position, shipping industry analysts said.Iran-aligned Houthi missile and drone attacks on commercial ships in the Red Sea have forced most container carriers to reroute vessels around Africa and sent spot rates soaring.That price shock is a "gift" that carriers will be giving back when the assaults stop…

12 Jan 2024

Container Rates Soar on Concerns of Prolonged Red Sea Disruption

© aerial-drone / Adobe Stock

Container shipping rates for key global routes have soared this week, with U.S. and UK air strikes on Yemen stirring concerns of a prolonged disruption to global trade in Red Sea, one of the world's busiest routes, industry officials said on Friday.U.S. and British warplanes, ships and submarines launched dozens of strikes across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping, widening regional conflict stemming from Israel's war…

12 Jan 2024

As Missiles Soar, Freight Rates Soar, too

Peter Sand, Chief Analyst, Xeneta. Image courtesy Xeneta

Missile strikes by the US and UK against Houthi militia in Yemen has brought heightened tensions across the region with disruption to ocean freight shipping set to deteriorate further.At approximately 2.30am (Sanaa/Red Sea time) today, Friday, the US and UK military carried out air strikes on targets in Yemen in response to Houthi militia attacks on merchant ships in the Red Sea, which have totalled 27 since November 19.“We want to see safe, risk-free voyages through the area for vessels and the situation must calm down for that to happen," said Peter Sand, Chief Analyst, Xeneta.

07 Jan 2024

War, Weather Put Ocean Shippers on Notice for Rough Seas in 2024

© Daniel / Adobe Stock

Recent hostilities in the Red Sea have thrown global shippers of vital goods for a loop - but it is hardly the only issue that big carriers are facing as 2024 kicks off.Giants like Maersk say the industry, which handles 90% of global trade, faces the possibility of significant disruptions, from ongoing wars to droughts affecting key routes like the Panama Canal. Complex vessel schedules are likely to be knocked out of sync for giant container ships, fuel tankers and other commodity haulers throughout the year.That will increase delays and raise costs for retailers like Walmart…

28 Dec 2023

Red Sea Shipping Workarounds Add Costs, Delays for Suppliers

© EvrenKalinbacak / Adobe Stock

Toymaker Basic Fun's team that oversees ocean shipments of Tonka trucks and Care Bears for Walmart and other retailers is racing to reroute cargo away from the Suez Canal following militant attacks on vessels in the Red Sea.Suppliers for the likes of IKEA, Home Depot, Amazon and retailers around the world are doing the same as businesses grapple with the biggest shipping upheaval since the COVID-19 pandemic threw global supply chains into disarray, sources in the logistics industry said.Florida-based Basic Fun usually ships all Europe-bound toys from its China factories via the Suez Canal…

19 Dec 2023

Markets Spike Following Houthi Attacks on Shipping

© Dragoș Asaftei / Adobe Stock

Continued missile attacks on merchant ships in the Red Sea have plunged supply chains into chaos, and consumers around the world will have to pay the price, according to Xeneta.Latest data from the industry analyst shows spot rates in the ocean freight shipping market spiked by 20% since Friday after major shipping liner companies such as Hapag Lloyd, MSC and Maersk announced they are avoiding the Red Sea amid the attacks by Houthi militia.Xeneta chief analyst Peter Sand said…

13 Dec 2023

Panama Canal Woes Mean Longer Haul for Many

Tanker Strinda inside the Gatun locks on the Panama canal. Copyright Moments by Patrick/AdobeStocks

As low water level continue to plaque the Panama Canal, shipowners and managers are paying the price in the form of longer hauls and higher fuel (and emissions) costs to deliver product to market.In one example, oil tanker Cururo is taking the long way from Houston to Chile: sailing the length of South America's Atlantic coast, across the Strait of Magellan and heading up the Pacific coast before discharging.The voyage could take 32 days and travel more than 10,000 nautical miles (18…

21 Aug 2023

Historic Drought, Hot Seas Slow Panama Canal Shipping

Source: Panama Canal Authority

Before the Ever Max ship carrying lava lamps, sofas, Halloween costumes and artificial Christmas trees could make its inaugural Panama Canal voyage this month, a historic drought forced it to drop weight by offloading hundreds of containers.Weather-related disruptions denied the vessel, owned by Taiwanese shipping company Evergreen Marine, a chance on Aug. 1 to set a record for carrying the most containers through the vital maritime shortcut that connects the Pacific and Atlantic…

29 Jun 2023

Long-Term Container Rates Fall (again)

Patrik Berglund, CEO, Xeneta

The beleaguered carrier industry took another major hit in June, with the latest data from Xeneta’s Shipping Index (XSI) showing a decline of 9.4% in global long-term shipping rates. Following on the heels of a 27.5% collapse in May, and a 10.3% fall in April, contracted rates have now shed 47.2% of their value in the last three months alone, and 51.7% over the course of 2023.Xeneta’s data shows falls in the prices of valid long-term contracts across all key trading corridors…

02 Aug 2023

Mixed Fortunes on Far East to Europe Trades

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With the peak ocean freight cargo season approaching, the latest data from Oslo-based Xeneta shows mixed fortunes, and outlooks, for the two main Far East to Europe trade corridors.Xeneta’s analysis reveals that shippers opting for the Far East – Mediterranean route are currently paying a spot rate premium compared to those choosing a North European option. There are also clear implications for long-term contracts, explains Peter Sand, Chief Analyst at Xeneta, across two very similar routes…

27 Apr 2023

“Friendshoring” Impacts Container Shipping Trade Patterns

© Peter / Adobe Stock

As geopolitical upheaval continues, Peter Sand, Chief Analyst, Xeneta, explores how global trade patterns have (and will) evolve.Geopolitical unrest could have dramatic and long-term impacts on global trade patterns for all goods and commodities, as political alliances are essentially being ripped up and rewritten. Spurred by Russia’s invasion of Ukraine in 2022, changing trade patterns are emerging in the container shipping sector, said Xeneta’s Peter Sand, as the term of the day is “friendshoring”…

27 Feb 2023

US Retailers' Ocean Shipping Price Woes Ending as New Delays Threaten

Collapsing ocean shipping rates are not all good news for U.S. retailers, who paid as much as $20,000 to move a container of goods during the worst pandemic disruptions, as they now are bracing for delays due to plummeting demand.Carriers like MSC and Maersk are trying to prop up prices by cancelling voyages and that could spark a new round of cargo delays as containers get bumped from one ship to the next, experts said ahead of a major U.S. ocean shipping conference in Long Beach…

24 Feb 2023

Emissions Winners, Losers on Far East to U.S. West Coast Trade

Copyright Björn Wylezich/AdobeStock

Xeneta returns this week with a second ranking of carrier carbon emissions, this time focused on the Far East to U.S. West Coast Trade."Why are we doing this? We want to shine a light on the importance of green shipping and spotlight the progress of carriers,” said Peter Sand, chief analyst, touting the results as "Name & Fame." Results are based on the Xeneta and Marine Benchmark Carbon Emissions Index (CEI).Name & Shame: Xeneta CEI Tool Highlights Best, Worst Enviro PerformersQ4'22…

09 Feb 2023

Name & Shame: Xeneta CEI Tool Highlights Best, Worst Enviro Performers

The Winner: Hamburg Süd scored favorably based on Xeneta's Carbon Emissions Index (CEI) tool due in part to its “relatively slow steaming.”  Copyright eyewave/AdobeStock

Xeneta has taken the first step in a campaign to identify the carrier industry’s best and worst environmental performers across the world’s 13 leading shipping trades. With the help of the Carbon Emissions Index (CEI), a tool from Xeneta and Marine Benchmark, carriers have been assessed on the main Far East to South America East Coast container corridor. With first results out, Hamburg Süd is likely celebrating; Evergreen, likely not.According to the latest analysis, the CO2 emitted…

12 Jan 2023

Container Shipping Turmoil Spills Over Into 2023, says Xeneta's Sand

Copyright dbvirago/AdobeStock

As container shipping demand continues to fall into the New Year, Xeneta Chief Analyst Peter Sand weigh in with his insights on the pace and direction of spot and contract rates; the likelihood of ship lay-ups and scrapping in 2023; plus the impact that West Coast port labor strife will have on the industry as a whole, as the East Coast U.S. emerges as the dominant player.To start us off, what do you see as far as falling demand and the blank sailings of container ships leading up to the Chinese New Year.Peter SandWhat I see in the market right now is quite dramatic, almost unprecedented.

09 Jan 2023

Some Ocean Shipping Rates Collapsing, but Real Price Relief is Months Away

© angeldibilio / Adobe Stock

Prices in the most volatile segment of ocean shipping are collapsing, but top retailers like Walmart and Home Depot should not expect relief until the spring contract renegotiation season, industry experts said.Spot rates, which cover anywhere from 10% to 40% of ocean container shipments and are considered a key indicator of the industry's health, are in free fall as recession looms and the pandemic-fueled U.S. import bubble deflates.The cost to send a container from Asia to the United States on the demand-sensitive spot market has tumbled more than 80% from its September peak above $20…

09 Dec 2022

Ocean Freight Spot Rates Out of Far East Plummet - Xeneta

©moofushi / Adobe Stock

The ocean freight rate landscape in the Far East has been completely redrawn since the start of the year, with spot rates plummeting by an average of 75% across the six major trading lanes, Xeneta said in its latest report.By comparison, long-term rates are proving more resilient, with a fall of ‘just’ 13%, the ocean and air freight rate benchmarking and market analytics platform said Friday. Role reversalThe latest analysis from Oslo-based Xeneta highlights a market in flux. Since early summer, spot rates have fallen from historical highs.

09 Nov 2022

Analysis: Meltdown in the Container Shipping Sector Gains Speed

Copyright ink drop/AdobeStock

Facing global economic headwinds, the volume of containerized cargo movement continues to plummet, Peter Sand, Chief Analyst, Xeneta, summarizes: “It is clear that the carriers are no longer in charge, the shippers are.”Peter, it seems like the news in the container shipping sector started as a flow and has turned into a torrent. There was some data released yesterday that showed a 9.1% drop in September year on year for dry containers, and a 2.3 decline in the reefer sector.

31 Oct 2022

Video: Container Carrier Capacity Adjustment - Too Little, Too Late?

Copyright Idanupong/AdobeStock

While drama in the container shipping sector has calmed a bit, container carriers still wrestle with unexpected drops in demand. Peter Sand, Xeneta, discusses vessel capacity moves and their likely impact on rates, as well as the first containership sent to the ship scrap yard in more than 18 months.Q: Peter, the last time that we spoke, you were succinct in saying that this market is a mess, with spot rates plunging in what traditionally is the busiest shipping season in the US. Has that picture changed in the last few weeks?Peter Sand, XenetaHas it changed from being a mess? Not really.

06 Oct 2022

Container Shipping Market: Plunging Rates and Blank Sailings

Copyright tonyv3112/AdobeStock

Peter Sand, the chief analyst of Xeneta discuss recent trends in the container shipping market, from plunging spot rates to blank sailings.The container shipping market has enjoyed a prolonged historic, and somewhat unexpected bull run, as COVID-induced consumer spending broadly switched from travel and entertainment to manufac-tured goods. But as COVID restrictions fade and inflation rages, the tides are changing, resulting in turmoil across many container shipping sectors.“Let’s focus on the Transpacific because that's where things are most crazy right now…

19 Aug 2022

Rollercoaster Containershipping Rates Continue, says Xeneta

South American spot rate gap set to narrow as shippers take advantage of lower Far East to West Coast ratesThe latest ocean freight rate data from Xeneta reveals that spot rates are currently $3,700 more expensive for shipping 40-ft. containers from the Far East to the South American East Coast, compared to the West Coast corridor. This huge gap – the norm is usually around a $55 East Coast premium – has opened up since 1 July. However, shippers looking to take advantage of the disparity should move quickly…

05 Aug 2022

China's Military Drills Near Taiwan Disrupt Key Shipping Lanes

© tawatchai1990 / Adobe Stock

China's military exercises in the waters around Taiwan have prompted some ships to navigate around the Taiwan Strait and give the island a wide berth, disrupting key trading routes for cargo and commodities sailing around the world, analysts said.Angered by U.S. House of Representatives Speaker Nancy Pelosi's visit to Taiwan, China on Thursday began four days of military drills around the disputed island, including firing live missiles and deploying fighter jets.Although Taiwan's ports are operating as normal…