Freight rates on the U.S. line soared, with freight rates on the U.S. West Line rising by 21.5%
The latest edition of the Shanghai Export Container Freight Index (SCFI) was released today (December 13), and the index showed an upward trend for three consecutive weeks, rising 5.67% this week, and the index rose 127.94 points to 2384.4. This increase was mainly due to the recovery of freight rates on the US-West and US-East routes, with the US-West route rising sharply by 21.5%.
Specifically, this week, among the four major routes, the European line per TEU (20-foot TEU) freight fell by $67 to $2,963, a decline of 2.21%; The Mediterranean line fell slightly by $15, or 0.4%, to $3,746 per TEU. In contrast, the rate per FEU (40-foot TEU) on the US-West route rose sharply by $714 to $4,023, an increase of 21.5%; The U.S. Eastern freight rate rose $570 per FEU to $5,494, or 11.6 percent.
Industry insiders pointed out that the early Spring Festival of the Lunar New Year and changes in tariff policies did lead to an increase in cargo volume on U.S. routes. In addition, Trump recently met with the president of the International Longshoremen's Association (ILA) union to express his support for the union and his opposition to automation and semi-automation, further increasing the risk of a strike at the docks. The combination of these factors is expected to push up freight rates around the Lunar New Year. Shipping companies are now planning to push rates higher after New Year's Day.
At the same time, the European line has a higher loading rate, with small overtime vessels (3000T) used to digest the cargo piled up in Singapore. This may be due to the early Spring Festival of the Lunar New Year, the factory will take an early holiday and start continuous shipments.
It is worth noting that due to the increased risk of strikes in the United States and the approach of the Lunar New Year, shipping companies continued to reduce shifts by about 8%. The container shipping company has notified the 15th of this month, the freight rate of each large box (40 feet standard box) on the US-West route will be increased by $2,000, compared with the current freight rate of $2,300-2,500, an increase of nearly 80%; The U.S. East route is scheduled to increase by $1,000. The European route freight rate has been high, will maintain the original price between 4700 and 5300 US dollars.
Large freight forwarders estimate that the actual increase of about $1,500 on the US-West route, through the ratio of spot price to long-term contract price. Although the price increase in the past was often only one week, this time due to the superposition of the Spring Festival and the strike effect, it may be able to maintain the market for two to three weeks, but the freight rate will be lowered week by week. However, some industry insiders believe that a wave of price increases may be ushered in again on January 1, and the actual development remains to be seen.
In addition, according to Delury's statistics, a total of 59 flights on the main East-West trade routes were cancelled during the 50th week (December 9 to December 15) and the second week (January 6 to January 12), a cancellation rate of 8 percent. Among them, the trans-Pacific eastbound route has the highest cancellation rate, reaching 51 percent; This was followed by transatlantic westbound routes (27%) and Asia-Northern Europe and the Mediterranean routes (22%). During this period, THE Ocean Alliance, THE Alliance and 2M Alliance cancelled 15, 13 and 8 voyages respectively. At the same time, non-alliance services have announced the suspension of 24 voyages.
SCFI Rates:
Shanghai to Europe freight rate 2,963 US dollars /TEU, down 67 US dollars, or 2.21%,
Shanghai to Mediterranean freight at $3,746 /TEU, down $15, or 0.40%,
The freight rate from Shanghai to West America is 4,023 USD /FEU, up 714 USD or 21.58%.
Freight from Shanghai to the East of the United States is 5,494 US dollars /FEU, up 570 US dollars, or 11.58%.
Persian Gulf route freight of $1507 per box, up $33 per week, up 2.42%;
South American route (Santos) freight per box 5608 US dollars, up 103 US dollars, an increase of 1.80%;
Southeast Asia route (Singapore) freight per box 725 US dollars, up 43 US dollars, or 0.59%.
The Delury Container Rate Composite Index (WCI), released late on Thursday, was flat and is expected to remain stable next week.
Specifically, this week, among the four major routes, the European line per TEU (20-foot TEU) freight fell by $67 to $2,963, a decline of 2.21%; The Mediterranean line fell slightly by $15, or 0.4%, to $3,746 per TEU. In contrast, the rate per FEU (40-foot TEU) on the US-West route rose sharply by $714 to $4,023, an increase of 21.5%; The U.S. Eastern freight rate rose $570 per FEU to $5,494, or 11.6 percent.
Industry insiders pointed out that the early Spring Festival of the Lunar New Year and changes in tariff policies did lead to an increase in cargo volume on U.S. routes. In addition, Trump recently met with the president of the International Longshoremen's Association (ILA) union to express his support for the union and his opposition to automation and semi-automation, further increasing the risk of a strike at the docks. The combination of these factors is expected to push up freight rates around the Lunar New Year. Shipping companies are now planning to push rates higher after New Year's Day.
At the same time, the European line has a higher loading rate, with small overtime vessels (3000T) used to digest the cargo piled up in Singapore. This may be due to the early Spring Festival of the Lunar New Year, the factory will take an early holiday and start continuous shipments.
It is worth noting that due to the increased risk of strikes in the United States and the approach of the Lunar New Year, shipping companies continued to reduce shifts by about 8%. The container shipping company has notified the 15th of this month, the freight rate of each large box (40 feet standard box) on the US-West route will be increased by $2,000, compared with the current freight rate of $2,300-2,500, an increase of nearly 80%; The U.S. East route is scheduled to increase by $1,000. The European route freight rate has been high, will maintain the original price between 4700 and 5300 US dollars.
Large freight forwarders estimate that the actual increase of about $1,500 on the US-West route, through the ratio of spot price to long-term contract price. Although the price increase in the past was often only one week, this time due to the superposition of the Spring Festival and the strike effect, it may be able to maintain the market for two to three weeks, but the freight rate will be lowered week by week. However, some industry insiders believe that a wave of price increases may be ushered in again on January 1, and the actual development remains to be seen.
In addition, according to Delury's statistics, a total of 59 flights on the main East-West trade routes were cancelled during the 50th week (December 9 to December 15) and the second week (January 6 to January 12), a cancellation rate of 8 percent. Among them, the trans-Pacific eastbound route has the highest cancellation rate, reaching 51 percent; This was followed by transatlantic westbound routes (27%) and Asia-Northern Europe and the Mediterranean routes (22%). During this period, THE Ocean Alliance, THE Alliance and 2M Alliance cancelled 15, 13 and 8 voyages respectively. At the same time, non-alliance services have announced the suspension of 24 voyages.
SCFI Rates:
Shanghai to Europe freight rate 2,963 US dollars /TEU, down 67 US dollars, or 2.21%,
Shanghai to Mediterranean freight at $3,746 /TEU, down $15, or 0.40%,
The freight rate from Shanghai to West America is 4,023 USD /FEU, up 714 USD or 21.58%.
Freight from Shanghai to the East of the United States is 5,494 US dollars /FEU, up 570 US dollars, or 11.58%.
Persian Gulf route freight of $1507 per box, up $33 per week, up 2.42%;
South American route (Santos) freight per box 5608 US dollars, up 103 US dollars, an increase of 1.80%;
Southeast Asia route (Singapore) freight per box 725 US dollars, up 43 US dollars, or 0.59%.
The Delury Container Rate Composite Index (WCI), released late on Thursday, was flat and is expected to remain stable next week.
