24.02.07SCFI Remains Robust in Week

The composite Shanghai Containerized Freight Index (SCFI) remained robust at 2,217.73 points in Week 5, which picked up 1.8% from the previous week, led by growth in spot rates for container exports from Shanghai to the U.S., according to the Shanghai Shipping Exchange (SSE). The week-on-week rise was attributed to disruptions in logistics due to the shipping chaos in the Red Sea and the Lunar New Year.

Ex-shanghai spot rates went down 4.8% to $2,723 per TEU to Europe and 3.8% to $3,723 per TEU to the Mediterranean but up 13.4% to $5,005 per FEU to the U.S. West Coast and 3.7% to $6,652 per FEU to the U.S. East Coast.

On north-south route, spot rates for exports from Shanghai rose 0.2% to $2,552 per TEU to southern Africa and 0.2% to $2,464 per FEU to eastern and western Africa. In contrast, they waned 4.6% to $1,586 per TEU to the Middle East Gulf, 0.6% to $1,249 per TEU to Australia and New Zealand and 4.3% to $2,552 per TEU to South America.

In the intra-Asia waters, spot rates for ex-shanghai container exports remained unchanged to Japan at $289 per FEU to Kansai and 302 per TEU to Kanto. They declined 4.7% to $305 per TEU to Southeast Asia and somewhat to $157 per TEU to South Korea.

Set at 1,000 points on Oct. 16, 2009, the SCFI is an indicator for spot rates for container exports from Shanghai that do not include terminal handling charges (THCs).

On the North America trade, sources of U.S. imports have changed as they have been diversified since the coronavirus pandemic. Imports from China accounted for 47% in 2018 but shrank to 40.7% in 2022 and 39.6% in 2023. In contrast, imports from Vietnam more than doubled from 3.3% in 2013 to 8.7% in 2023.

The number of commercial vessels transiting the Suez Canal decreased a steep 67% year on year in January. Currently, 4.25 ships pass through the canal per day on average, a significant decrease, as around 15 ships transited before the Houthis began assaults on commercial vessels in the Red Sea. The situation has lowered the transport efficiency of North Europe and Mediterranean services. The Houthis have indicated they will not attack Chinese commercial vessels as China maintains amicable relations with Iran, which supports the Houthis. As such, Chinese lines are enhancing Red Sea services and relevant sales and marketing efforts.