What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
Feb 1, 2024
5 min read
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
Welcome to the first market commentary by me, Lars Jensen, exclusively for users of Freightonomics, a community by Freightify for freight pricing professionals. I hope you will find the information useful. The intention is to provide a series of analytical commentaries linking the global market developments to the developments seen specifically by the users of Freightify.
Impact of Red Sea Crisis:
Everyone in container shipping has seen the headlines. The Red Sea crisis has caused freight rates to skyrocket. Shippers are struggling to keep up with the plethora of new surcharges. Carriers have managed to reverse a situation of low rates and overcapacity to a situation of tight capacity and a reversal to more than profitable freight rates. And the headline from this is indeed correct.
But what is important to realize is that even though the above is a correct assessment of the situation related to the Red Sea and as a consequence some of the most pivotal trade lanes in the world, it is not true everywhere. This is where it becomes extremely important for market stakeholders to correctly assess to which degree their own shipment needs, or transport corridors are affected or not.
Regional Disparities in Rate Changes:
As an example, a data pull from Freightify in Mid-January shows that Asia-North America spot rates are up 111% compared to November before the crisis and Asia-Europe is up by 164%. Different indices give slightly different numbers, but the overall trend is the same:
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
Welcome to the first market commentary by me, Lars Jensen, exclusively for users of Freightonomics, a community by Freightify for freight pricing professionals. I hope you will find the information useful. The intention is to provide a series of analytical commentaries linking the global market developments to the developments seen specifically by the users of Freightify.
Impact of Red Sea Crisis:
Everyone in container shipping has seen the headlines. The Red Sea crisis has caused freight rates to skyrocket. Shippers are struggling to keep up with the plethora of new surcharges. Carriers have managed to reverse a situation of low rates and overcapacity to a situation of tight capacity and a reversal to more than profitable freight rates. And the headline from this is indeed correct.
But what is important to realize is that even though the above is a correct assessment of the situation related to the Red Sea and as a consequence some of the most pivotal trade lanes in the world, it is not true everywhere. This is where it becomes extremely important for market stakeholders to correctly assess to which degree their own shipment needs, or transport corridors are affected or not.
Regional Disparities in Rate Changes:
As an example, a data pull from Freightify in Mid-January shows that Asia-North America spot rates are up 111% compared to November before the crisis and Asia-Europe is up by 164%. Different indices give slightly different numbers, but the overall trend is the same:
What goes beyond the headlines of Red Sea Crisis? Lars Jensen notes Carriers managed to reverse from Low Rates to Profitable Tight Capacity – But what's the full picture?
Welcome to the first market commentary by me, Lars Jensen, exclusively for users of Freightonomics, a community by Freightify for freight pricing professionals. I hope you will find the information useful. The intention is to provide a series of analytical commentaries linking the global market developments to the developments seen specifically by the users of Freightify.
Impact of Red Sea Crisis:
Everyone in container shipping has seen the headlines. The Red Sea crisis has caused freight rates to skyrocket. Shippers are struggling to keep up with the plethora of new surcharges. Carriers have managed to reverse a situation of low rates and overcapacity to a situation of tight capacity and a reversal to more than profitable freight rates. And the headline from this is indeed correct.
But what is important to realize is that even though the above is a correct assessment of the situation related to the Red Sea and as a consequence some of the most pivotal trade lanes in the world, it is not true everywhere. This is where it becomes extremely important for market stakeholders to correctly assess to which degree their own shipment needs, or transport corridors are affected or not.
Regional Disparities in Rate Changes:
As an example, a data pull from Freightify in Mid-January shows that Asia-North America spot rates are up 111% compared to November before the crisis and Asia-Europe is up by 164%. Different indices give slightly different numbers, but the overall trend is the same: