[SURVEY SAYS] WHAT'S YOUR OCEAN FREIGHT SHIPPING

EXPECTATION FOR 2017?

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ABOUTXENETA

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 to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

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GLOBAL ECONOMIC GROWTH REMAINS WEAK FOR THE REST OF 2016 WITH THE IMF PROJECTING ONLY A 3.1% GROWTH AND A SLIGHT UPTICK OF 3.4% FOR 2017. AGAINST THIS BACKDROP, THE OCEAN FREIGHT MARKET CONTINUES TO STRUGGLE.

WE ASKED OUR SOCIAL MEDIA COMMUNITY WHAT THEY WERE

EXPECTING FOR OCEAN FREIGHT SHIPPING IN 2017. HERE ARE THEIR

THOUGHTS.

EXPECTATIONS OF HIGHER RATES IN

2017

IN THIS WEEK’S SURVEY, WE ASKED SOCIAL MEDIA FRIENDS WHAT THEIR OVERALL OCEAN FREIGHT RATE EXPECTATIONS

ARE FOR 2017.

OVER HALF (56%) OF THE SURVEY RESPONDENTS EXPECT RATES TO

INCREASE WHILE 44% BELIEVE RATES WILL REMAIN STABLE. AN INTERESTING RESPONSE TO THE

SURVEY WAS ACTUALLY THAT NO ONE SEEMS TO EXPECT THAT WILL

DECLINE IN 2017.

SLIGHT INCREASE BUT NOT AS MUCH AS SOME SHIPPERS ARE

EXPECTING OR AS MUCH AS CARRIERS WOULD LIKE.

- PETER TIRSCHWELL, SENIOR DIRECTOR, EDITORIAL CONTENT FOR HIS MARKIT

INDEED, OUR LATEST WEBINAR FOR TRANSPORTATION PROFESSIONALS OUTLINED HOW CARRIERS WERE SUCCESSFUL IN PULLING UP SHORT-TERM RATES DESPITE AVERAGE RATES FALLING DURING THE QUARTER

LEADING INTO THE CHINESE NEW YEAR CARRIERS SEEM TO HAVE BETTER STARTING POINTS TO NEGOTIATE RATES WITH SHIPPERS GREATLY AS COMPARED TO THE PREVIOUS YEAR.

REDUCING CAPACITY AND

ALLIANCES

IT SEEMS THE ONLY EFFECTIVE WAY FOR CARRIERS TO REVIVE FREIGHT RATES IS TO REMOVE CAPACITY. ALPHALINER NOTES THAT THE WEEKLY NUMBER OF WEEKLY SERVICES ON ASIA-EUROPE ROUTES HAS BEEN REDUCED FROM 2015’S 21 LOOPS TO A MAXIMUM OF 17.

ANOTHER MEANS OF REDUCING CAPACITY IS SCRAPING VESSELS. ACCORDING TO THE WALL STREET JOURNAL, ABOUT 1,000 SHIPS WITH A COMBINED CAPACITY TO CARRY 52 MILLION METRIC TONS OF CARGO WILL BE SOLD FOR SCRAP METAL THIS YEAR.

2017 OUTLOOK | HIGHER RATES?

SLIGHT INCREASE BUT NOT AS MUCH AS SOME SHIPPERS ARE

EXPECTING OR AS MUCH AS CARRIERS WOULD LIKE.

- PETER TIRSCHWELL, SENIOR DIRECTOR, EDITORIAL CONTENT FOR HIS MARKIT

IT IS TOO SOON TO SAY WHAT WILL REALLY HAPPEN FOR 2017 AS ONE DAY THINGS MAY SEEM LIKE SUNSHINE AND THE NEXT TORRENTIAL RAIN FALLS.

Q4 IS A TELLING TIME TO SEE HOW THE MARKET RESPONDS TO MID-MONTH GRIS, CONTRACT NEGOTIATIONS AND EVEN THE RECENT CONFIRMATION OF THE OCEAN ALLIANCE. TIME WILL TELL. WHO SAID CONTAINER SHIPPING WAS DULL?

2017 IS JUST AROUND THE CORNER AND WHILE TRADE EXPECTATIONS REMAIN LOW, OUR SURVEY RESULTS INDICATE THE POSSIBILITY OF HIGHER RATES. ALBEIT, THERE WON'T BE AN IMMEDIATE SURGE IN PRICES, BUT ON A WHOLE, THERE ARE SIGNS OF A MARKET TRENDING UPWARDS VERY, VERY (TURTLE PACE) SLOWLY.

FIND OUT HOW MARKET MOVEMENTS PLAYED OUT IN Q3

2016.

DOWNLOAD FREE WEBINAR

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

REQUEST DEMO NOW