The freight rates on the four major routes have continued to decline, with the Far East to the US East Coast route dropping by more than 10%
The United States has successively introduced reciprocal tariff policies to various countries, yet global cargo volumes have yet to improve, and the freight rate index has fallen for six consecutive weeks. The latest Shanghai Containerized Freight Index (SCFI), released on July 18th, dropped 86.39 points to 1,649.9 points, with a weekly decline of 4.98%. Freight rates on all four major routes declined, among which the freight rate on the Far East to the US East Coast route dropped by more than 10%. The previously significant declines in the US West Coast and Europe have begun to consolidate, while the US East Coast and Mediterranean have seen relatively obvious catch-up declines.
Although it has now entered the traditional peak season, the US route is still affected by the dual impact of a large number of additional vessels being put into operation and insufficient market demand. As the shipping schedule progresses, the fluctuation of freight rates will intensify. Although freight rates on European routes declined this week, the trend remained relatively stable, reflecting that the market cargo volume has not yet shown a peak season effect.
Shipping companies originally planned to raise prices on the West Coast of the United States in the middle of this month. However, as several alliance and non-alliance vessels had no intention of raising prices, Mediterranean Shipping Company's suspension of one West Coast route failed to save freight rates. On the Maersk website on the 18th, the quoted price for shipping a large container from Shanghai to the West Coast of the United States before July 30th was $1,675, which was $25 lower than the market lowest price.
Currently, the freight rate for a large container to the West Coast of the United States is approximately $1,700 to $1,900. On some special routes, the discounted price has dropped to around $1,500, approaching the cost line of alliance vessels. Non-alliance small vessels have already suffered losses. The newly added shipping companies and additional vessels to the US route are now withdrawing due to cost pressure.
The industry roughly estimates that there are currently about 23 shipping companies operating on the Pacific route. According to Alphaliner's data as of July 10th, the capacity of the trans-Pacific route has started to decline, but it is still not enough to stabilize freight rates. The freight rate to the East Coast of the United States remains at a high profit level of $3,200 to $3,400 per large container.
Several freight forwarders have pointed out that as the tariff policies of various countries become increasingly clear, shippers on the US route no longer need to rush to ship. Eventually, the increase in the real tax rate, its impact on import prices and the economy, as well as the appreciation of Asian currencies and the depreciation of the US dollar, will all prompt importers to plan their shipments carefully.
Several freight forwarders have pointed out that as the tariff policies of various countries become increasingly clear, shippers on the US route no longer need to rush to ship. Eventually, the increase in the real tax rate, its impact on import prices and the economy, as well as the appreciation of Asian currencies and the depreciation of the US dollar, will all prompt importers to plan their shipments carefully.
The latest SCFI freight rate on July 11th:
The freight rate from Shanghai to Europe is 2,079 US dollars per TEU, down 20 US dollars, with a weekly decline of 0.95%.
The freight rate from Shanghai to the Mediterranean is $2,528 per TEU, down $139, with a weekly decline of 5.21%.
The freight rate from Shanghai to the West Coast of the United States is $2,142 per FEU, down $52, with a weekly decline of 2.37%.
The freight rate from Shanghai to the Eastern United States is $3,612 per FEU, down $560, with a weekly decline of 13.42%.
The freight rate per container on the Persian Gulf route is $1,321, down $286, a weekly decline of 17.79%.
The freight rate for each container on the Australia-New Zealand route is 1,042 US dollars, an increase of 21 US dollars, or 2.1%.
The freight rate for the South American route (Santos) is $5,628 per container, down $593, representing a weekly decline of 9.53%.
On the near-sea route, the price per TEU from the Far East to Southeast Asia dropped by $9 compared to the previous week, a decline of 1.99%. The TEU from the Far East to Kansai, Japan and from the Far East to Kanto, Japan rose by 1 US dollar each compared to the previous week, while the TEU from the Far East to South Korea remained the same as the previous period.
Although it has now entered the traditional peak season, the US route is still affected by the dual impact of a large number of additional vessels being put into operation and insufficient market demand. As the shipping schedule progresses, the fluctuation of freight rates will intensify. Although freight rates on European routes declined this week, the trend remained relatively stable, reflecting that the market cargo volume has not yet shown a peak season effect.
Shipping companies originally planned to raise prices on the West Coast of the United States in the middle of this month. However, as several alliance and non-alliance vessels had no intention of raising prices, Mediterranean Shipping Company's suspension of one West Coast route failed to save freight rates. On the Maersk website on the 18th, the quoted price for shipping a large container from Shanghai to the West Coast of the United States before July 30th was $1,675, which was $25 lower than the market lowest price.
Currently, the freight rate for a large container to the West Coast of the United States is approximately $1,700 to $1,900. On some special routes, the discounted price has dropped to around $1,500, approaching the cost line of alliance vessels. Non-alliance small vessels have already suffered losses. The newly added shipping companies and additional vessels to the US route are now withdrawing due to cost pressure.
The industry roughly estimates that there are currently about 23 shipping companies operating on the Pacific route. According to Alphaliner's data as of July 10th, the capacity of the trans-Pacific route has started to decline, but it is still not enough to stabilize freight rates. The freight rate to the East Coast of the United States remains at a high profit level of $3,200 to $3,400 per large container.
Several freight forwarders have pointed out that as the tariff policies of various countries become increasingly clear, shippers on the US route no longer need to rush to ship. Eventually, the increase in the real tax rate, its impact on import prices and the economy, as well as the appreciation of Asian currencies and the depreciation of the US dollar, will all prompt importers to plan their shipments carefully.
Several freight forwarders have pointed out that as the tariff policies of various countries become increasingly clear, shippers on the US route no longer need to rush to ship. Eventually, the increase in the real tax rate, its impact on import prices and the economy, as well as the appreciation of Asian currencies and the depreciation of the US dollar, will all prompt importers to plan their shipments carefully.
The latest SCFI freight rate on July 11th:
The freight rate from Shanghai to Europe is 2,079 US dollars per TEU, down 20 US dollars, with a weekly decline of 0.95%.
The freight rate from Shanghai to the Mediterranean is $2,528 per TEU, down $139, with a weekly decline of 5.21%.
The freight rate from Shanghai to the West Coast of the United States is $2,142 per FEU, down $52, with a weekly decline of 2.37%.
The freight rate from Shanghai to the Eastern United States is $3,612 per FEU, down $560, with a weekly decline of 13.42%.
The freight rate per container on the Persian Gulf route is $1,321, down $286, a weekly decline of 17.79%.
The freight rate for each container on the Australia-New Zealand route is 1,042 US dollars, an increase of 21 US dollars, or 2.1%.
The freight rate for the South American route (Santos) is $5,628 per container, down $593, representing a weekly decline of 9.53%.
On the near-sea route, the price per TEU from the Far East to Southeast Asia dropped by $9 compared to the previous week, a decline of 1.99%. The TEU from the Far East to Kansai, Japan and from the Far East to Kanto, Japan rose by 1 US dollar each compared to the previous week, while the TEU from the Far East to South Korea remained the same as the previous period.
