Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GLOBAL
Global shipping rates jumped again last week as Houthi attacks against merchant shipping in the Strait of Bab el-Mandeb continued. More ships are avoiding the Red Sea and going around southern Africa instead which can take an additional 14 days and those that are still travelling to the Suez Canal are paying crews extra. As a result the FBX global container index increased 20.5% in the week to January 19.
- While the rise in shipping rates is well below the rise seen in 2021, they have been disinflationary until late 2023 and are now likely to slow the pace the of inflation returning to target, particularly in Europe. New contracts are agreed in March and so the biggest jump may be ahead of us.
- The China/east Asia to the Mediterranean rate rose 9.1% last week to be up 189% this year compared with 140% for the global index. China/east Asia to the east coast of north America soared 35.2% and is now 114% higher in January. The risks to US inflation from increased shipping costs may delay the first Fed rate cut.
- Around 28mn barrels of crude and products have so far been rerouted from the Red Sea, according to OB. The Iran-backed Houthis have said that they won’t attack Russian, Chinese, Saudi or UAE shipping, but warned against cooperating with the US. The US and UK attacked Houthi positions on Monday, the eighth such attack, to protect the “free flow of commerce”.
Global FBX container rates USD/points
Source: MNI - Market News/Refinitiv
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok