According to the latest data from Oslo’s Xeneta, the spot rate on the leading fronthaul reefer route now sits at USD 4 240 per FEU.

The traditionally resilient trade in reefers from Europe to the Far East appears to be slowly succumbing to the same market forces as the rest of the containerized ocean freight sector, with sustained declines in volume now being followed by spot and long-term rate falls.

According to the latest data from Oslo’s Xeneta, the spot rate on the leading fronthaul reefer route now sits at USD 4 240 per FEU. After a period of almost two years defined by prices in excess of USD 5 000 per FEU reefer container, a sharp fall in December has changed the character of the market, with spot rates now below-contracted prices for the first time since October 2019.

Xeneta’s crowd-sourced data shows a current long-term rate just shy of USD 4 500 per FEU reefer, after peaking in September last year at USD 4 850.

Here Sand points out that reefer volumes from Europe to the Far East peaked back in 2020, and have been declining ever since. Volumes fell by 4% in 2021, accelerating to a 13% drop in 2022. This equates to a loss of 100 000 TEU from January to November 2022.

Despite the declining rates, Xeneta’s historical data shows that prices remain “relatively strong”. In the third quarter of 2019 long-term reefer contracts could be signed for “only” USD 2 000 per FEU.