THE ocean container shipping market hit a turning point in July, as long-term rates on major fronthaul trades showed signs of recovery just as short-term rates began to ease, reports New York's Marine Link.
The xeneta Global XSI, which tracks all valid long-term contracts in the market, rose 2.5 per cent in July, reaching 151.5 points.
More significantly, the XSI sub-index for Far East Exports - covering the largest fronthaul trades to Europe and the US - increased 12.6 per cent in July, climbing to 178.8 points.
This uptick occurred alongside a softening of short-term rates on key trades from the Far East to the US and Europe, following the sharp increases seen in recent months.
'Long term ocean container shipping rates remained subdued despite massive increases on the short-term market in May and June - but that is starting to change,' said Xeneta senior shipping analyst Emily Stausboll.
'For example, while short term rates on the Far East to US West Coast trade increased more than 140 per cent between April 30 and July 1, the long-term market increased by 20 per cent. However, short term rates to the US West Coast have fallen by 12 per cent since July 1, just as the long-term market shows signs of life.'
SeaNews Turkey
The xeneta Global XSI, which tracks all valid long-term contracts in the market, rose 2.5 per cent in July, reaching 151.5 points.
More significantly, the XSI sub-index for Far East Exports - covering the largest fronthaul trades to Europe and the US - increased 12.6 per cent in July, climbing to 178.8 points.
This uptick occurred alongside a softening of short-term rates on key trades from the Far East to the US and Europe, following the sharp increases seen in recent months.
'Long term ocean container shipping rates remained subdued despite massive increases on the short-term market in May and June - but that is starting to change,' said Xeneta senior shipping analyst Emily Stausboll.
'For example, while short term rates on the Far East to US West Coast trade increased more than 140 per cent between April 30 and July 1, the long-term market increased by 20 per cent. However, short term rates to the US West Coast have fallen by 12 per cent since July 1, just as the long-term market shows signs of life.'
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