23.01.11SCFI Sags in Week 1

Freight rates for container exports from China fluctuated bearishly in Week 1. Beijing has lifted its zero-COVID policy, leading to a surge in coronavirus cases and a labor shortage. Production at manufacturers has, as such, been adversely impacted, decreasing demand and increasing the number of businesses moving up Lunar New Year holidays. The composite Shanghai Containerized Freight Index (SCFI), an indicator for spot rates for container exports from Shanghai that do not include terminal handling charges (THCs) which is set at 1,000 points on Oct. 16, 2009, fell 4.2% from the previous week to 1,061.14 points, registering its first week-on-week decline in two weeks. There has been a total shrinkage of 78.4% since the index reached 5,100 points in January 2022.

Spot rates on the route to the west coast of North America declined 0.6% to $1,414 per FEU, while those on the route to the east coast waned 7.2% to $2,845 per FEU, falling below the $3,000-per-FEU line for the first time in 30 months.