News
The composite Shanghai Containerized Freight Index (SCFI) closed at 886.85 points in Week 39, which decreased 0.7% from the previous week for four consecutive weeks of decline, according to the Shanghai Shipping Exchange (SSE). The index has reached its lowest level since May 2020. In China, the eight-day National Day holiday began on Sept. 29. Shipping companies are making blank sailings and other capacity adjustment as demand is weaker. However, these efforts are not effective enough to keep freight rates from falling.
It is particularly striking that spot rates for container exports from Shanghai to Europe slid 3.9% to $599 per TEU, falling below the $600-per-TEU line for the first time since October 2019. They have plunged 43% since the beginning of the year. They were weak on other east-west trade lanes as well, going down 4.7% to $1,166 per TEU to the Mediterranean and 5.1% to $1,129 per FEU to the U.S. West Coast. Spot rates were sluggish to the U.S. East Coast, too, sliding to $2,249 per FEU.
Ex-Shanghai spot rates decreased across the board on north-south routes as well, going down 3.1% to $730 per TEU to the Middle East Gulf, 15% to $1,756 per TEU to South America, 0.5% to $1,305 per TEU to southern Africa and 1.7% to $2,813 per TEU to eastern and western Africa.
