News
The composite Shanghai Containerized Freight Index (SCFI) quoted 1,444.44 points in Week 36, up 0.04% from the previous week. Spot rates for container exports from Shanghai surged on the U.S. trade resulting from a general rate increase (GRI) but offset by rate declines on the Europe trade.
On the east-west routes, spot rates for container exports from Shanghai fell 11.21% to 1,315 per TEU to Europe and 8.11% to 1,971 per TEU to the Mediterranean. In contrast, rates slid 13.83% to 2,189 per FEU to the U.S. West Coast and 7.22% to $3,073 per FEU to the U.S. East Coast.
On the north-west trade lanes, ex-Shanghai spot rates rose 5.68% to $3,199 per TEU to South America, 0.2% to $2,990 per TEU to Southern Africa and 0.43% to $3,974 per TEU to East and West Africa. On the other hand, rates declined 3.8% to $1,519 per TEU to the Middle East Gulf and 0.91% to $1,131 per TEU to Australia and New Zealand.
Within Asia, containers were exported from Shanghai at $419 per TEU to Southeast Asia, unchanged; $139 per TEU to South Korea, unchanged; $313 per TEU to Kansai, Japan, down 0.32%; and $322 per TEU to Kanto, Japan, down 0.31%.
On the Europe route, spot rates for container exports from Shanghai fell for the sixth consecutive week. With China’s National Day being around the corner, competition over containers were intensified among carriers, while pressure persisted on capacity supply. Ex-Shanghai rates are expected to fall further as some lines will continue to pursue policies to attract cargo.
On the U.S. trade, ex-Shanghai rates rose for two back-to-back weeks owing to enhanced capacity adjustments and the GRI, although it had been projected that duller transport demand would write off rate hikes in the previous week. However, containers were still moved at low rates in some parts of the market. As such, it is anticipated that future freight rates will fluctuate depending on capacity supply.
The SCFI represents spot rates for container exports from Shanghai that do not include terminal handling charges (THCs), which was set at a baseline of the same value on Oct. 16, 2009.
