The decline of the United States increased, and the freight rates of the four major routes in Europe and the United States fell
23, Shanghai export container freight index (SCFI) again fell, the four major routes in Europe and the United States all fell, the decline of the United States increased, mainly due to weakening demand and new capacity continued to increase. The industry pointed out that the risk of strike by dockworkers in the East of the United States has become the focus of attention, unless the East strike, the freight rate will continue to fall.
Shanghai export container freight rate index (SCFI) has fallen again recently, the latest data show that the index reversed last week's slight rise, down 5.6% to 3097.63 points. This change marks the end of last week's five-game losing streak (up 0.84%) was broken again, and the four major routes in Europe and the United States all fell. Specifically, the US-West and US-East routes fell by 9.51% and 8.08%, respectively, while the European and Mediterranean routes also fell by 4.56% and 2.63%.
The industry generally believes that new capacity continues to pour into the market in the form of overtime ships and new routes, which intensifies market competition and becomes the main factor suppressing freight rates. Big freight forwarders predict that unless there is an actual strike on the East Coast of the United States, freight rates will likely continue to fall week by week.
Freight forwarding industry sources revealed that since mid-August, shipping companies have tried to raise prices on the United States line, but they seem powerless. The widening of the decline of the US line this week is actually the accumulation of two weeks of downward pressure. Recently, Europe and the West of the United States weekly freight rate to maintain a slow decline of roughly $200 to $300. At the same time, the market has appeared between the alliance shipping companies to compete for supplies and the phenomenon of large price differences, on the US-West route, some alliance shipping companies insist on the price of more than 6,000 US dollars, while some have launched a preferential price of about 4,600 US dollars.
Market quotes and information are currently confusing, and different routes and shipping companies have different strategies. Some adopt a price, some introduce a special price before sailing when the loading rate is low, and some adjust the ratio of long-term contract price and spot price, in essence achieving a price reduction. Despite the decline in freight rates, shipping companies are still maintaining a high level of profitability.
Industry analysts pointed out that before the Gaza ceasefire negotiations were not reached, geopolitical tensions led to the extension of ship detour time, which formed a certain support for freight rates. However, as demand weakens and new capacity continues to be added, the priority for shipping companies is to maintain price stability. To this end, shipping companies have taken measures such as port hopping, empty flights and big ships for small boats to adjust accommodation, and tried to resist the decline by raising prices.
Of particular note is that the contract of the International Longshoremen's Association (ILA) is due to expire on September 30, and both shipping and cargo sides are closely watching the risk of a possible strike in October, which will have a significant impact on freight rates on Asia-to-US routes. Market rumors have surfaced that shipping companies have reported to the Federal Maritime Commission (FMC) that they plan to raise the GRI(Comprehensive rate Increase surcharge) per 40-foot container to a whopping $4,000.
However, from the current supply and demand situation of the maritime market, oversupply has led to price chaos. Industry insiders said that last week's brief rally in SCFI was actually a misunderstanding, and the latest index fell again, especially the US-West route fell by more than 9%, and the US-East route also fell by 8%. The market generally believes that freight rates may continue to fall in the next few weeks, and the risk of strike by dock workers in the East of the United States is still an important variable to watch.
Freight forwarder analysis pointed out that due to the lack of cargo, new shipbuilding continued to join the market and the market gradually entering the off-season and other multiple factors, the overall trend of freight rates bearish. In particular, this year, as shippers worry about the possibility of tariffs in the United States and strikes in the United States, they have shipped ahead of schedule, resulting in the fourth quarter of the off-season may be more cold. By contrast, the impact of the Canadian rail workers' strike on the maritime market is small, but if a strike does occur on the US East Coast, the impact will be extremely severe.
SCFI Freight Index for this week 23 August:
Far East to Europe freight at $4,400 /TEU, down $210, a weekly decline of 4.56%;
Far East to Mediterranean freight at $4,523 /TEU, down $122, 2.63% weekly decline;
Far East to West America freight at $5,955 /FEU, down $626, a weekly decline of 9.51%;
The freight rate from the Far East to the United States East was 8546 US dollars /FEU, down 715 US dollars, a weekly decline of 8.08%;
The shipping rate of the Persian Gulf route is 1,969 US dollars per box, down 170 US dollars per week, down 9.95% per week;
The freight rate per box for Australia and New Zealand routes is $2072, up $161 a week, or 8.4% a week;
South America route (Santos) $7562, week down $168, week down 2.17%.
Offshore line:
Far East to Southeast Asia route (Singapore) per box freight of 544 US dollars, down 34 US dollars, down 5.88%;
Far East to Kansai, Japan, Far East to Kanto, Japan, Far East to Korea each TEU is the same as the previous phase.
Shanghai export container freight rate index (SCFI) has fallen again recently, the latest data show that the index reversed last week's slight rise, down 5.6% to 3097.63 points. This change marks the end of last week's five-game losing streak (up 0.84%) was broken again, and the four major routes in Europe and the United States all fell. Specifically, the US-West and US-East routes fell by 9.51% and 8.08%, respectively, while the European and Mediterranean routes also fell by 4.56% and 2.63%.
The industry generally believes that new capacity continues to pour into the market in the form of overtime ships and new routes, which intensifies market competition and becomes the main factor suppressing freight rates. Big freight forwarders predict that unless there is an actual strike on the East Coast of the United States, freight rates will likely continue to fall week by week.
Freight forwarding industry sources revealed that since mid-August, shipping companies have tried to raise prices on the United States line, but they seem powerless. The widening of the decline of the US line this week is actually the accumulation of two weeks of downward pressure. Recently, Europe and the West of the United States weekly freight rate to maintain a slow decline of roughly $200 to $300. At the same time, the market has appeared between the alliance shipping companies to compete for supplies and the phenomenon of large price differences, on the US-West route, some alliance shipping companies insist on the price of more than 6,000 US dollars, while some have launched a preferential price of about 4,600 US dollars.
Market quotes and information are currently confusing, and different routes and shipping companies have different strategies. Some adopt a price, some introduce a special price before sailing when the loading rate is low, and some adjust the ratio of long-term contract price and spot price, in essence achieving a price reduction. Despite the decline in freight rates, shipping companies are still maintaining a high level of profitability.
Industry analysts pointed out that before the Gaza ceasefire negotiations were not reached, geopolitical tensions led to the extension of ship detour time, which formed a certain support for freight rates. However, as demand weakens and new capacity continues to be added, the priority for shipping companies is to maintain price stability. To this end, shipping companies have taken measures such as port hopping, empty flights and big ships for small boats to adjust accommodation, and tried to resist the decline by raising prices.
Of particular note is that the contract of the International Longshoremen's Association (ILA) is due to expire on September 30, and both shipping and cargo sides are closely watching the risk of a possible strike in October, which will have a significant impact on freight rates on Asia-to-US routes. Market rumors have surfaced that shipping companies have reported to the Federal Maritime Commission (FMC) that they plan to raise the GRI(Comprehensive rate Increase surcharge) per 40-foot container to a whopping $4,000.
However, from the current supply and demand situation of the maritime market, oversupply has led to price chaos. Industry insiders said that last week's brief rally in SCFI was actually a misunderstanding, and the latest index fell again, especially the US-West route fell by more than 9%, and the US-East route also fell by 8%. The market generally believes that freight rates may continue to fall in the next few weeks, and the risk of strike by dock workers in the East of the United States is still an important variable to watch.
Freight forwarder analysis pointed out that due to the lack of cargo, new shipbuilding continued to join the market and the market gradually entering the off-season and other multiple factors, the overall trend of freight rates bearish. In particular, this year, as shippers worry about the possibility of tariffs in the United States and strikes in the United States, they have shipped ahead of schedule, resulting in the fourth quarter of the off-season may be more cold. By contrast, the impact of the Canadian rail workers' strike on the maritime market is small, but if a strike does occur on the US East Coast, the impact will be extremely severe.
SCFI Freight Index for this week 23 August:
Far East to Europe freight at $4,400 /TEU, down $210, a weekly decline of 4.56%;
Far East to Mediterranean freight at $4,523 /TEU, down $122, 2.63% weekly decline;
Far East to West America freight at $5,955 /FEU, down $626, a weekly decline of 9.51%;
The freight rate from the Far East to the United States East was 8546 US dollars /FEU, down 715 US dollars, a weekly decline of 8.08%;
The shipping rate of the Persian Gulf route is 1,969 US dollars per box, down 170 US dollars per week, down 9.95% per week;
The freight rate per box for Australia and New Zealand routes is $2072, up $161 a week, or 8.4% a week;
South America route (Santos) $7562, week down $168, week down 2.17%.
Offshore line:
Far East to Southeast Asia route (Singapore) per box freight of 544 US dollars, down 34 US dollars, down 5.88%;
Far East to Kansai, Japan, Far East to Kanto, Japan, Far East to Korea each TEU is the same as the previous phase.
