23.01.18SCFI Continues to Fall in Week 2

Freight rates for container exports from China were sluggish in Week 2. The composite Shanghai Containerized Freight Index (SCFI), an indicator for spot rates for containerized shipments from Shanghai that do not include terminal handling charges (THCs), fell 2.8% from the previous week to 1,031.55 points, which has suffered a decline for two weeks in a row, according to the Shanghai Shipping Exchange (SSE). Individual indexes were mostly weak, although those on the routes to Japan and South Korea stayed flat.

Spot rates for containers to the west coast of North America dipped 2.5% to $1,378 per FEU, while rates for those to the east coast waned 0.7% to $2,825 per FEU. The concentration of shipments to east coast ports that was notable until recently has eased. On the route to Europe, competition among shipping lines over containers has been intensified due to weaker demand. Spot rates came close to the 1,000-per-TEU line, going down 2.9% to $1,020 per TEU. Rates were bearish on the route to the Mediterranean, too, decreasing 1% to $1,836 per TEU.

On north-south trade lanes, spot rates sank 3.6% to $1,002 per TEU for containers to the Middle East Gulf, 7.5% to $545 per TEU for those to Australia and New Zealand and 9.3% to $1,117 per TEU for those to South America. Spot rates diminished for those to Africa as well.

In intra-Asia waters, spot rates plunged 12% to $154 per TEU for containers to Southeast Asia but remained unchanged at $323 per TEU for those to Japan's Kansai region, $331 per TEU for those to Kanto and $238 per TEU for those to South Korea.