22.07.27Ex-China CTR. Exports in Week 29

Container exports from China remained dull in Week 29, as it is hard to project how the Chinese economy will grow in the second half of this year due domestic and international negative factors, such as the increase again of coronavirus infections and global inflation, although it has been on a recovery track since the Shanghai lockdown was lifted. The composite Shanghai Containerized Freight Index (SCFI), an index port spot rates for container exports from Shanghai that do not include terminal handling charges (THCs), went down 2% from the previous week, having remained on the decline for six weeks in a row, and fell below the 4,000-point line for the first time in a year, since July 2021.

Spot rates on the route to North America fell 2.3% to $6,722 per FEU for containers to the west coast, which has stayed on a downward trend for the 10th straight week, and 1% to $9,441 per FEU for those to the east coast, which has continued to sink for nine week running.

Freight rates for containers to Europe were weak, too, as the European Central Bank (ECB) has raised its benchmark deposit rate by 0.5 basis points to 0%, decreasing consumer confidence. It is expected, as such, that container movement from China to Europe will continue to decline for the time being, making freight rates bearish. Spot rates to the region dropped 0.7% to $5,570 per TEU, having remained weak for eight consecutive weeks. Those for containers to the Mediterranean were sluggish, too, waning 1.1% to $6,210 per TEU.