Xeneta analyzes global shipping rates and provides data and insights to help customers. They believe measuring shipping metrics can help the industry continuously improve. However, the arrival of many new large container ships threatens to upset the fragile balance of supply and demand in the container shipping industry by flooding the market with excess capacity. Carriers have already laid up over 1.3 million TEUs of existing capacity, but new mega-ships on the way from carriers like MSC and UASC will add hundreds of thousands more TEUs, which could cause shipping rates to collapse again.

1. THE MEGAS ARE COMING:
CONTAINERS STILL CHASING
CARGO

2. JOIN THE CONVERSATION
ON TWITTER
@XENETA_AS

3. ABOUT
XENETA
At Xeneta we believe there is an untapped
potential for everyone in the industry, to
systematically learn from our individual
and collective efforts. We hold true that "if
you cannot measure it, you cannot improve
it". That’s why we think actionable metrics
is the key to continuously evolve for every
business, and ultimately the entire industry.
Rethinking global logistics is the vision of
Xeneta.
With international experience from the
logistics industry, we have first-hand
knowledge of the challenges related to high
volatility and lack of transparency in the
ocean freight market. By combining
logistics background and information
technology expertise, we found the solution
WE ARE
TRANSFORMING
GLOBAL
LOGISTICS

4. ARE YOU PAYING THE
RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS
POTENTIAL IN REAL
TIME.
CONTACT US.

5. IT COULD BE SAID THAT
CONTAINERSHIP CARRIERS MAY
VERY WELL HAVE SOMETHING
ELSE COMING. THERE ARE TOO
MANY MEGAS COMING INTO
SERVICE, AND THIS AVALANCHE
OF EMPTY BOXES IS
THREATENING TO UPSET THE
TENUOUS OCEAN FREIGHT RATE
GAINS OF THE PAST SIX
MONTHS.

6. MARCH 1 MARKED THE SIX MONTH
ANNIVERSARY OF THE HANJIN
BANKRUPTCY, WHOSE SUDDEN AND
BRUTAL DEATH LIKELY SAVED THE
BOX-SHIP INDUSTRY FROM LOSING
3-5 OTHER CARRIERS.

7. WHILE RATES HAVE SLIGHTLY SLID
SINCE CHINESE NEW YEAR, THEY ARE
STILL ALMOST DOUBLE THOSE OF
LAST SUMMER WHEN THE MARKET
AVERAGE PRICE IN THE XENETA SPOT
RATES INDEX AT THE END OF JUNE
STOOD AT $1034 (CHINA MAIN PORTS
– NORTH EUROPE MAIN | 40’
CONTAINER).

8. TODAY (MARCH 3, 2017), THE XENETA
SPOT RATES INDEX SHOWS THE
MARKET AVERAGE PRICE FOR A 40’
BOX FROM CHINA MAIN PORTS –
NORTH EUROPE MAIN PORTS AT
$1761, UP 252% SINCE THE SAME
TIME LAST YEAR WHEN THE SAME
BOX WAS MOVED ON THE SAME
CORRIDOR AT A MARKET AVERAGE
PRICE OF $499.

9. OCEAN FREIGHT RATES ARE
INCREASING. FIND OUT HOW TO
STAY AHEAD OF THE MARKET.
DOWNLOAD
OUR WEBINAR

10. MEGA VESSELS WITH
OVERCAPACITY | WHAT
GIVES?

11. LAST YEAR, CARRIERS
CONTINUED TO CANCEL
SAILINGS, RE-JIGGERED
THEIR BASICALLY
INEFFECTIVE ALLIANCES,
AND SCRAPPED A RECORD
AMOUNT OF
CONTAINERSHIPS – BUT
NOW IT ALL MAY COME
UNDONE AS PREVIOUSLY
CONTACTED MEGASHIPS
BEGIN TO ARRIVE. THE
NEW VESSELS THREATEN
TO UPSET THE TENUOUS
SUPPLY-DEMAND RATIO OF
BOXES-TO-CARGO THAT
WAS FINALLY BEGINNING
TO BALANCE.
LAST YEAR, CARRIERS
CONTINUED TO CANCEL
SAILINGS, RE-JIGGERED
THEIR BASICALLY
INEFFECTIVE ALLIANCES,
AND SCRAPPED A RECORD
AMOUNT OF
CONTAINERSHIPS – BUT
NOW IT ALL MAY COME
UNDONE AS PREVIOUSLY
CONTACTED MEGASHIPS
BEGIN TO ARRIVE. THE
NEW VESSELS THREATEN
TO UPSET THE TENUOUS
SUPPLY-DEMAND RATIO OF
BOXES-TO-CARGO THAT
WAS FINALLY BEGINNING
TO BALANCE.

12. JUST LAST WEEK MSC
RECEIVED THE 19,472 TEU MSC
RIFAYA, AND WITHIN THE NEXT
30 DAYS WILL TAKE DELIVERY
OF TWO MORE 19,500 TEU
VESSELS

13. AND WHERE WILL THIS ALMOST
60,000 NEW TEU'S BE DROPPED?

14. INTO THE ALREADY-BLOATED ASIA-NORTH EUROPE ROUTES.
UASC WILL BE BE ADDING TO THE GLUT; THEY HAVE SIX 18,800
TEU MEGAS (TOTALLING112,800) ALONG WITH ELEVEN 15,000
(165,000) TEU VESSELS ON ORDER.
THAT'S 337,800 EMPTY TEU'S ARRIVING INTO A MARKET
THAT'S ALREADY FLOODED WITH 1.3 MILLION TEU'S (340
SHIPS) LAID-UP CAPACITY; WITH THIS MANY EMPTY BOXES,
CAN THE MARKET STILL BASK IN THE RALLY FROM THE PAST
FEW MONTHS?
TIGHTER CAPACITY MEASURES HAVE INDEED BEEN TAKEN BY
CARRIERS TO BAND AID THE CHALLENGE AS THE MEGAS
SOON INVADE THE SCENE. IS IT ENOUGH?

15. LEARN HOW XENETA CAN HELP
YOU GET INSIGHT INTO YOUR
GLOBAL OCEAN FREIGHT PRICES.
REQUEST
DEMO NOW

16. MAERSK TAKES A PRAGMATIC
APPROACH

17. MAERSK, ON THE OTHER HAND; TOOK A REALISTIC VIEW OF
THE MARKETPLACE AND PUSHED THEIR 2017 DELIVERIES OF
NINE 14,000 TEU VESSELS (126,000) OUT TO 2018-2019.
THEY SAID THEY DID NOT HAVE TO MAKE ANY PENALTY
PAYMENTS TO THE SHIPYARDS, AND IF VOLUMES IMPROVED
THERE WERE SUFFICIENT SHIPS THAT COULD QUICKLY BE
CHARTERED.
THAT'S PERHAPS SOME OF THE COMMON SENSE THINKING
OTHERS IN THE INDUSTRY SHOULD ALSO DISPLAY.

18. GOVERNMENT
ASSISTANCE WILL
LIKELY BE REQUIRED BY
THE YARDS, BUT WITH
1.6 MILLION TEU'S OF
NEW VESSEL CAPACITY
ARRIVING IN 2017,
ANOTHER 12-18
MONTHS OF
COLLAPSING RATES
WILL SURELY BRING
MORE CARRIER
BANKRUPTCIES AND
TURN THOSE
TEMPORARY LAYOFFS
AT THE YARDS
PERMANENT.