Freight rates fell for the fifth consecutive week, and the four major routes in Europe and the United States fell continuously
This period, China's export container transportation market continued to adjust the market, the lack of further growth of transportation demand momentum, most routes lower freight rates, dragging down the composite index. European routes, transport demand growth is weak, market freight rates continue to decline. North American routes, transportation demand continues to slow down, supply and demand fundamentals lack support, and market rates continue to adjust the market.
On August 9, the Shanghai export container comprehensive freight index released by the Shanghai Shipping Exchange was 3253.89 points, down 2.36% from the previous period, for the fifth consecutive week of decline; It is down nearly 480 points, or more than 14%, from its recent high.
Tai Ronny Chairman Yan Yicai said on the 9th that SCFI's weekly decline of only 3% and 5% should not be too nervous. He stressed that the current transport of each container can still achieve three times the profit, only when the SCFI falls to half of the current level, it needs to be really vigilant, and it is estimated that the freight rate on the European and American routes will remain at a high level of volatility. Looking to the future, from the current to October, the US line will usher in the traditional peak season, the market performance in the third quarter is expected to be worry-free, the outlook for the Marine industry throughout the year is optimistic, but the situation next year still needs further observation.
Regarding the Red Sea crisis, the industry generally believes that it is difficult to ease in the short term, mainly due to the complex political, religious and historical factors behind the conflicts between Israel and Hamas, Hezbollah, Iran, Yemen Houthi and other parties. Based on past experience, it is difficult for the two sides to reach an agreement on ceasefire conditions quickly, and it is expected that the Red Sea crisis will be difficult to calm down before the US presidential election. During this period, freight rates on European and American routes are expected to remain high and volatile.
The recent decline in SCFI freight rates, freight forwarding industry analysts pointed out that after entering the traditional peak season in August, the volume of goods did not increase significantly as scheduled, resulting in a decline in prices during the peak season. This phenomenon is mainly attributed to the continued inflationary pressure, the early arrival of the peak season and the continuous increase of capacity three factors. In the face of overcapacity, many ships loading dissatisfaction, this week European and American lines per 40 feet container freight continued to fall 200 to 300 US dollars, some shipping companies have abandoned the planned price increase of the US line in mid-August.
The market is also closely watching the latest developments in a strike vote by Canadian rail workers, and U.S. lawmakers and shippers have warned that a strike could adversely affect the economies of both countries. Freight forwarding industry analysts believe that if the strike comes true, it will directly affect the operation of ports on the West Coast of Canada, and may spill over to the United States route.
From the perspective of the maritime industry as a whole, overcapacity is the biggest challenge currently facing. According to Alphaliner's latest statistics, as of the 11th, global capacity has reached 30,426,547TEU, once again a record high. Despite the easing of freight rates, the SCFI index fell for five consecutive weeks, but compared with the 13 consecutive weeks of increase from early April to early July, the overall increase is still significant, and shipping companies still maintain considerable profits.
Current SCFI Freight Index as at 9 August:
Freight from the Far East to Europe was $4,786, down $121 or 2.47% from the previous week;
Far East to Mediterranean freight was $4,733 /TEU, down $264 or 5.28% from the previous week;
The freight rate from Far East to West America was $6,068 /FEU, down $177 from the previous week, a weekly decline of 2.83%;
The freight rate from the Far East to the United States East was 9083 US dollars /FEU, down 263 US dollars from the previous week, a weekly decline of 2.81%;
Persian Gulf route freight rate of 2,208 US dollars per box, down 9 US dollars, slightly down 0.4%;
South America route (Santos) freight rate of $7,987 per box, up $120, up 1.5%;
The freight rate per box for Australia and New Zealand routes was 1,776 US dollars, up 195 US dollars, up 12.3%;
On August 9, the Shanghai export container comprehensive freight index released by the Shanghai Shipping Exchange was 3253.89 points, down 2.36% from the previous period, for the fifth consecutive week of decline; It is down nearly 480 points, or more than 14%, from its recent high.
Tai Ronny Chairman Yan Yicai said on the 9th that SCFI's weekly decline of only 3% and 5% should not be too nervous. He stressed that the current transport of each container can still achieve three times the profit, only when the SCFI falls to half of the current level, it needs to be really vigilant, and it is estimated that the freight rate on the European and American routes will remain at a high level of volatility. Looking to the future, from the current to October, the US line will usher in the traditional peak season, the market performance in the third quarter is expected to be worry-free, the outlook for the Marine industry throughout the year is optimistic, but the situation next year still needs further observation.
Regarding the Red Sea crisis, the industry generally believes that it is difficult to ease in the short term, mainly due to the complex political, religious and historical factors behind the conflicts between Israel and Hamas, Hezbollah, Iran, Yemen Houthi and other parties. Based on past experience, it is difficult for the two sides to reach an agreement on ceasefire conditions quickly, and it is expected that the Red Sea crisis will be difficult to calm down before the US presidential election. During this period, freight rates on European and American routes are expected to remain high and volatile.
The recent decline in SCFI freight rates, freight forwarding industry analysts pointed out that after entering the traditional peak season in August, the volume of goods did not increase significantly as scheduled, resulting in a decline in prices during the peak season. This phenomenon is mainly attributed to the continued inflationary pressure, the early arrival of the peak season and the continuous increase of capacity three factors. In the face of overcapacity, many ships loading dissatisfaction, this week European and American lines per 40 feet container freight continued to fall 200 to 300 US dollars, some shipping companies have abandoned the planned price increase of the US line in mid-August.
The market is also closely watching the latest developments in a strike vote by Canadian rail workers, and U.S. lawmakers and shippers have warned that a strike could adversely affect the economies of both countries. Freight forwarding industry analysts believe that if the strike comes true, it will directly affect the operation of ports on the West Coast of Canada, and may spill over to the United States route.
From the perspective of the maritime industry as a whole, overcapacity is the biggest challenge currently facing. According to Alphaliner's latest statistics, as of the 11th, global capacity has reached 30,426,547TEU, once again a record high. Despite the easing of freight rates, the SCFI index fell for five consecutive weeks, but compared with the 13 consecutive weeks of increase from early April to early July, the overall increase is still significant, and shipping companies still maintain considerable profits.
Current SCFI Freight Index as at 9 August:
Freight from the Far East to Europe was $4,786, down $121 or 2.47% from the previous week;
Far East to Mediterranean freight was $4,733 /TEU, down $264 or 5.28% from the previous week;
The freight rate from Far East to West America was $6,068 /FEU, down $177 from the previous week, a weekly decline of 2.83%;
The freight rate from the Far East to the United States East was 9083 US dollars /FEU, down 263 US dollars from the previous week, a weekly decline of 2.81%;
Persian Gulf route freight rate of 2,208 US dollars per box, down 9 US dollars, slightly down 0.4%;
South America route (Santos) freight rate of $7,987 per box, up $120, up 1.5%;
The freight rate per box for Australia and New Zealand routes was 1,776 US dollars, up 195 US dollars, up 12.3%;
