News
Charter rates remain elevated despite free-falling freight rates, according to Linerlytica.
The Shanghai Containerized Freight Index (SCFI) and China Containerized Freight Index (CCFI) have slipped 70% and 50%, respectively, since their 2024 peaks, but Linerlytica’s Charter Rate Index (CRI) has continued to rise throughout the same period.
The CRI-to-CCFI ratio has reached a record high of 318%, but charter rates and secondhand prices show no signs of weakening as carriers continue to chase after tonnage in an early warning that capacity management remains elusive.
The mid-October rate hikes are unlikely to succeed given the lack of capacity cuts even as the market enters the slack season. Service withdrawals for the winter season announced so far have been negligible, which could portend further freight rate weakness in the fourth quarter (October-December).
