The Dispatch - Issue #31

Mark Woolnough -

Rates

A quiet week on the rate slide due to the Chinese golden week holiday. There is some talk in the market of rates stabilising and possibly increasing, as the carriers have taken this as an opportunity to blank more sailing and get their ducks in a row. However, I’d fully expect more reductions as we get further into October.

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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 $5,852 per 40’ container (FEU) dated 04/10/22 (down 13.30% WoW)

FBX

Report a figure of $6389 per 40’ container (FEU) dated 07/10/22 (down 3% WoW)

News

Some articles I found of interest this week. Containing anaysis of the current rate market, how the lines are working to keep their record profits, and a detailed look at China's current issues.

A Rate Tsunami or A Rate Correction?
Is a collapse in box rates a threat to the industry? Not necessarily. We need to remember that rates are cyclical, and maybe the recent slide in the box rates is similar to the correction that commonly affects commodity prices and stock markets. Read more.
Xeneta LogoPatrik Berglund
Dramatic cuts to services as lines battle to hang onto ‘super-cycle’ profits - The Loadstar
Ocean carriers are preparing to implement the severest cuts to liner services seen since the beginning of the pandemic, as demand levels plummet across global tradelanes.
The LoadstarMike Wackett
The Chinese economy: Troubled times ahead – Council on Geostrategy
George Magnus investigates the ailments affecting the Chinese economy and the necessary measures required to solve them
Council on GeostrategyGeorge Magnus

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