The Dispatch - Issue #35
Rates
We’ve not hit the bottom yet, as rates continue to erode from Asia to the UK.
40’ containers can now be booked at under $1500 into Southampton, however sailings are still a little erratic as the lines implement yet more blanking sailings to halt the pain.
Below indices are always lagging on the actual achievable rates but provide a good record & visual of the situation.
XSI® - C
Report a figure of $2,126 per 40’ container (FEU) dated 06/12/22 (down 15.06% WoW)
FBX
Report a figure of $3,530 per 40’ container (FEU) dated 09/12/22 (down 2% WoW)
News
Nick Savvides
Sam Chambers
Sam Chambers
Tweets
“A race to the bottom,” says HSBC on container rates (thread), though “loss-making rates could test capacity discipline”. Other HSBC thoughts on the current state of play: /1
— Peter Tirschwell (@PeterTirschwell) December 6, 2022
Starbucks borrows from customers at -10%. Not a typo.
— Alex Lieberman (@businessbarista) December 8, 2022
Here's how:
1) People buy Starbucks gift cards & load $ into the app
2) Starbucks gets to use that money aka float to fund operations ($1.64bn of it).
3) ~10% of customers don't use their balance ($160 million)
This Christmas you can watch Trading Places while pondering the fact that premiums on orange juice futures are at an all-time high.https://t.co/UHNy8vrKEh by @MarvinPerezmkts pic.twitter.com/Qv4XJOp1Ew
— Tracy Alloway (@tracyalloway) December 8, 2022