XENETA: SHIPPING TO THE UK FROM ASIA MORE EXPENSIVE POST-BREXIT

Shipping containers to the UK from Asia is now more pricey compared to sending to other mainland Europe ports, according to Xeneta, noting that  historically freight rates to these areas have been the same due to the proximity of the main UK ports and the main ports in North Europe.

"However, this relationship has changed over the past year," said Peter Sand, Xeneta chief analyst.

"In a post-Brexit world, shippers are paying a considerable premium for UK ports compared to North Europe," Sand added, noting that this is the case both on the short- and long-term contracts.

As of mid-February, the ocean and air freight rate benchmarking and market analytics platform said it cost around US$15,350 per feu to ship a container from Asia to the UK on the spot market, which is more than US$950 per feu more expensive than shipping to other ports in mainland Europe.

"This premium is, in fact, lower than it has been for many months, having topped at US$1,995 per feu in March 2021. In 2021, you would have saved US$1,400 per feu on average into North Europe instead of the UK, whereas in 2019 and the first half of 2020, the difference in rates was non-existent at US$70 per feu," Sand added.

On the long-term market, the report said the premium for going to the UK has jumped considerably as long-term rates to the UK rose by close to US$2,000 per FEU as we entered the new year, while those from the Far East to North Europe only increased by US$200.

According to Xeneta data, rates for long-term contracts signed over the past three months stood at US$11,359 per feu from the Far East to the UK and US$9,408 for those going to North Europe.

Xeneta said freight rates are lowest for containers going to Felixstowe on both the long- and short-term markets, while London Gateway is "by far the most expensive" on the long-term market (US$13,400 per FEU) but is still cheaper than Southampton on the spot market, as here rates lie at US$15,800.

"Shipping to the UK from the Far East is considerably more expensive than going to the continent," Sand said.