News / Shippers still favouring contracts, despite short-term spot rate discounts

ONE Machinac Nansha Port China Source ONE

While long-term container contract rates from Asia continue to advance, ocean carriers have been busy offering significant discounts on spot rates from China this week, as cargo availability temporarily dries up due to Covid lockdown restrictions.

However, the momentum in long-term contract sign-ups at significantly higher rates is underpinning the huge first-quarter profits being reported by carriers.

According to Xeneta’s crowd-sourced ocean freight rate data, April saw a further 11% jump in its index for long-term contract rates, for a year-on-year increase ...