- The ongoing Red Sea crisis has triggered a faster surge in shipping rates, surpassing the early days of the Covid-19 pandemic, but industry experts predict the heightened rates may be short-lived.
- Xeneta’s data reveals a more than 200% spike in shipping costs from the Far East to Europe in the first 52 days of the crisis.
- Shippers, however, are expressing impatience and suspicion toward carriers maintaining elevated rates through opaque surcharges, emphasizing the need for transparency.
Xeneta’s recent data highlights an unprecedented surge in shipping costs, with rates spiking over 200% in the first 52 days of the Red Sea crisis, surpassing the initial rate increases seen during the early days of the Covid-19 pandemic. The sudden nature of the crisis is causing more disruption, though rates have not reached Covid-19 levels.
Shippers Demand Transparency: Opaque Surcharges Prompt Impatience
Shippers are growing impatient and suspicious as carriers introduce opaque surcharges, including peak season fees, EU ETS surcharges, Suez Canal transit fees, and re-routing costs. Industry leaders, including James Hookham from the Global Shippers Forum, advocate for increased transparency, emphasizing the need for carriers to justify and communicate the reasons behind surcharge increases.
Experts Predict Rate Decline Amidst Capacity Adjustments
Xeneta’s chief analyst, Peter Sand, and other industry experts anticipate a decline in rates as carriers address the capacity crunch in the Far East caused by delayed ships returning from Europe via the Cape of Good Hope. Shippers may accept the time needed to react to the crisis, but as new arrangements settle, rates are expected to flatten or decline sooner than anticipated.
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Source: The Loadstar
