US importers are postponing negotiations for new container shipping contracts, anticipating a decline in the rate increases caused by Red Sea vessel attacks, according to shipping industry analysts. The Houthi missile and drone attacks on commercial ships in the Red Sea, attributed to Iran-aligned forces, have compelled most container carriers to divert their routes around Africa, leading to a surge in spot rates.
The rerouting of vessels has not only increased costs by an estimated $1 million per container ship but also disrupted global vessel schedules, pushing spot rates above contract rates, even on unaffected routes such as the trans-Pacific. For instance, the cost to transport a 40-foot container from Shanghai to Los Angeles in the spot market peaked at $4,900 in February but has since decreased to about $4,300, still over twice the contract rate of approximately $2,000. Despite the current high spot rates, several trans-Pacific shippers are waiting for further reductions, influenced by carriers like Maersk's warnings about new ship deliveries potentially leading to oversupply and limiting chargeable rates. "Nobody wants to negotiate at peak," remarked Stephanie Loomis, Americas head of ocean freight for Rhenus Logistics.
Source: reuters.com