Negative rates

Negative rates are not unusual in ocean shipping and are most common in a weak market.

It's important to note that it is usually only the base rate itself that is negative. There are still fuel (or bunker adjustment), security, terminal handling, and other mandatory surcharges to consider — and once we add them in, the total all-in rate will still end up being positive.

Negative rates in Xeneta

If you encounter negative rates in Xeneta while looking at the Market low segment with either one or both THCs excluded, try adding the missing THCs by selecting the OTHC+DTHC option — the total rate should become positive.

Why carriers quote negative rates

There are several reasons why a carrier might choose to quote a negative rate:

• Trade imbalance. Carriers need to reposition their empty containers — most common on backhaul corridors (Europe – Asia, America – Asia, etc.)
• Overcapacity. There's too much capacity on the market, which forces carriers to lower their rates — most common on short haul routes (Intra-Asia)
• Incentives. Carriers want to incentivize customers to use their services to either maintain or increase their market share — not very common, and can potentially happen on any trade lane