Intra-Asia contract rates near record highs amid post-lockdown capacity rush
Intra-Asia container contract rates are inching up to record highs as shippers lock in capacity during Shanghai’s post-lockdown recovery even as spot rates are starting to slide amid a mixed picture for demand growth.
The rate movements have narrowed the spread between long and short-term rates to within a few hundred dollars, data from online price benchmarking platform Xeneta shows.
“Carriers have tended to lock-in the current spot rate when they offer long-term rates,” Dubai-headquartered FIBS Logistics said. “Hence, the gap between long-term and spot has narrowed.”
“Shippers prefer the benefit of long-term contracts for their essential needs and trade lanes,” Peter Sand, Xeneta’s chief analyst, told JOC.com. “And when given the opportunity between improved supply chain resilience and more poor service, the choice is easy on the must-haves.”
Average long-term contract rates for a 40-foot box from China to Singapore are now up to about $2,320 compared with $1,950 in early February, Xeneta data shows. By comparison, spot rates are down to approximately $2,500 from a high of about $3,300 in early February.
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