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18.3% rise in TEU miles makes it key measurement of demand: Xeneta

24 Jul '24

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18.3% rise in TEU miles makes it key measurement of demand: Xeneta

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Container volumes transported was the best metric to understand the ocean freight market last October, but the Red Sea crisis changed that, with TEU miles turning a key measurement of demand, Xeneta said.
In January-April 2024, each container shipped globally was transported 9.3 per cent further on an average, generating a rise of 18.3 per cent in TEU miles.

Actual volumes of containers transported was the most relevant metric to understand the ocean freight market last October, but the Red Sea crisis changed that, with twenty-foot equivalent unit (TEU) miles becoming a key measurement of demand due to the sudden and dramatic rises in sailing distances around the Cape of Good Hope, according to Xeneta.

In the first four months this year, each container shipped globally was transported 9.3 per cent further on an average, generating a global increase of 18.3 per cent in TEU miles, the Norway-based ocean and air freight rate benchmarking and market analytics platform said.

Measuring demand in this way will remain important as long as Red Sea diversions are in place, it noted.

The number of containers being moved is also increasing this year. This more traditional demand measurement showed a growth of 8.2 per cent year on year (YoY) during January-April 2024. However, this should be viewed in the context of slow demand in the early part of 2023, which picked up later in the year.

If demand for the months of May-December 2024 stays on par with 2023, a full-year demand growth of 2.6 per cent will be seen, Xeneta noted.

Fibre2Fashion News Desk (DS)

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