News / Threat to contract rates as carriers fail to boost spot market prices

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Ocean carriers aim to have at least 50% of their business fixed by way of annual contracts, which are generally agreed at significantly higher rates than volatile spot cargo, but that gap is narrowing.

According to an analysis by Xeneta, its long-term freight rate XSI index declined by 2.6% in October, and has fallen 62.2% in the past 12 months. However, the benchmarking firm has warned that the situation for shipping lines could “get worse before it ...