The peak season for container shipping is coming early! SCFI hits 22-month high
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The Red Sea crisis remains unresolved, strikes broke out in European ports, and the Shanghai Export Container Freight Index (SCFI) has risen for 11 consecutive weeks and reached a new high.
According to the latest data released by the Shanghai Aviation Exchange on June 21, the SCFI index rose 96.38 points to 3475.6 points last week, setting a new high since late August 2022, with a weekly increase of 2.85%. Freight rates on the four major ocean routes have continued to rise, with the US line seeing a larger increase.
Last week, the freight rate per FEU from the Far East to the US West line increased by US7 to US,173, a weekly increase of 3.86%; the freight rate per FEU from the Far East to the US East line increased by US4 to US,277, a weekly increase of 3.55%; the freight rate from the Far East to Europe line per FEU increased by 3.55%. The TEU freight rate increased by US7 to US,336, a weekly increase of 3.75%; the Far East to Mediterranean line per TEU freight rate increased by US to US,855, a weekly increase of 0.14%.
On the near-ocean line, the freight rate per TEU from the Far East to Kansai, Japan, was unchanged from the previous week, at US3; the freight rate per TEU from the Far East to Kansai, Japan, was unchanged from the previous week, at US9; and the freight rate per TEU from the Far East to Southeast Asia was US9. The freight rate per TEU from the Far East to South Korea increased by US to US9 a week, an increase of US from the previous week to US9.
Industry analysts point out that the war situation in the Middle East is one of the important reasons affecting current freight rates. In addition, affected by the situation in the Red Sea, the shortage of ships and cabins has spread to Asian ports. If market demand continues to be strong, port congestion will be difficult to alleviate during the traditional peak season.
At present, the industry generally expects freight rates to continue to rise in July. Maersk Line has notified customers that the freight rate per FEU on the European route will increase by US,000 on July 1, and Mediterranean Shipping Company has also informed customers that the freight rate per FEU on the US East route will increase by US,000 on July 1.
On the other hand, although some international container shipping companies plan to open more flights, in fact, they will not significantly improve the tight supply chain situation. The main reason is that there are many variables in the market. In addition to geopolitics, strikes have recently broken out in major European ports, including Hamburg and Bremen in Germany. Labor negotiations at ports in the East United States are also ongoing. Some cargo owners have avoided further expansion and impact of the strike. The entire supply chain has been actively rushing to ship goods recently, and market demand is still strong.
In addition, the intensified port congestion in Singapore has brought the peak season ahead of schedule this year, driving up freight rates. Analysts believe that this means that the peak season may end early, and the high freight rates may not begin to ease until September.
