Baltimore bridge collapse has not triggered an increase in ocean freight shipping rates: Xeneta

Data released today, Monday, 8 April by Xeneta, the ocean freight rate benchmarking and intelligence platform, reveals average spot rates from the Far East into the US North East Coast (including Baltimore) have fallen slightly (-1%) since the bridge collapse on 26 March to stand at USD 5421 per FEU (40ft shipping container). When including other US East Coast ports such as New York / New Jersey, rates from the Far East have decreased by 3% in the same period.

Average spot rates from North Europe to the US North East Coast have fallen by a larger 8% in the same period to stand at USD 2357 per FEU. When including other US East Coast ports, rates have decreased by 4%.

Peter Sand, Xeneta Chief Analyst, said: “Spot rates have not reacted but that doesn’t mean shippers with cargo heading to Baltimore are not affected – on the contrary they are seeing containers arriving at ports they were not expecting.

 “Ocean freight container shipping rates may not have increased following the bridge collapse, but this incident is yet another problem for shippers to handle on top of all the other disruptions impacting supply chains at the moment, including the ongoing diversions in the Red Sea region and drought in the Panama Canal.”

On Friday, 5 April, the Port of Baltimore issued an update stating it expects to open a 280-feet wide and 35-feet deep federal navigation channel by the end of April, followed by a reopening of the permanent 700-feet wide and 50-feet deep channel by the end of May, restoring port access to normal capacity.

While shippers will welcome a timeline for the reopening of maritime lanes into Baltimore, Sand believes importers into the US East Coast could be set for further disruptions in 2024 due to labor negotiations.

The International Longshoremen’s Association’s six-year contract with the United States Maritime Alliance, which represents port terminal operators and ocean carriers on the East Coast, expires on 31 September – and no new agreement has yet been reached.